Sullivan's Island Company began operating a subsidiary in a foreign country on January $1,2024,$ by investing capital in the amount of $94,000$ pounds. The subsidiary immediately borrowed $225,000$ pounds on a five$-$year note with $9$ percent interest payable annually beginning on January $1,2025.$ The subsidiary then purchased for $319,000$ 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 $1,2024,$ the subsidiary rented the building for three years to a group of local attorneys for $8,850$ pounds per month. By year$-$end, rent payments totaling $88,500$ pounds had been received, and $17,700$ pounds was in accounts receivable. On October $1,2024,4,100$ pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of $11,575$ pounds back to Sullivan's Island Company on December $31,2024.$ The functional currency for the subsidiary is the pound. Currency exchange rates for $1$ pound follow:

January $1,2024$ $ $2\mathrm{.}60=1$ Pound

October $1,20242\mathrm{.}65=1$ Pound

December $31,20242\mathrm{.}68=1$ Pound

Average for $20242\mathrm{.}64=1$ Pound

Required:

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.