Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 70,000 pounds. The subsidiary immediately borrowed 165,000 pounds on a five-year note with 9 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 235,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary rented the building for three years to a group of local attorneys for 8,250 pounds per month. By year-end, rent payments totaling 82,500 pounds had been received, and 16,500 pounds was in accounts receivable. On October 1, 2,900 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,875 pounds back to Sullivan's Island Company on December 31, 2017. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow:

January 1, 2017 $ 2.60 = 1 Pound

October 1, 2017 2.65 = 1

December 31, 2017 2.68 = 1

Average for 2017 2.64 = 1

Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in pounds and then translate these amounts into U.S. dollars.