Sullivan's Island Company began operating a subsidiary in a foreign country on January $1,2024,$ by investing capital in

the amount of $100,000$ pounds. The subsidiary immediately borrowed $240,000$ pounds on a five$-$year note with $6$

percent interest payable annually beginning on January $1,2025.$ The subsidiary then purchased for $340,000$ 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 $9,000$

pounds per month. By year$-$end, rent payments totaling $90,000$ pounds had been received, and $18,000$ pounds was in

accounts receivable. On October $1,2024,4,400$ pounds was paid for a repair made to the building. The subsidiary

transferred a cash dividend of $11,500$ 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{.}40=1$ Pound

October $1,2024$

$2\mathrm{.}45=1$ Pound

December $31,2024$

$2\mathrm{.}48=1$ Pound

Average for $2024$

$2\mathrm{.}44=1$ 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.