Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 90,000 pounds. The subsidiary immediately borrowed 215,000 pounds on a five-year note with 7 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 305,000 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 8,750 pounds per month. By year end rent payments totaling 87,500 pounds had been received, and 17,500 pounds was in accounts receivable. On October 1, 3,900 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,625 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 $2.40 = 1 pound

October 1, 2017 $2.45 =1 pound

December 31, 2017 $2.48 = 1 pound

Average for 2017 $2.44 = 1 pound

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.