Sullivan's Island Company began operating a subsidlary In a forelgn country on January 1, 2020, by Investing capital In the amount of 86,000 pounds. The subsidiary immediately borrowed 205,000 pounds on a five-year note with 5 percent interest payable annually beginning on January 1, 2021. The subsidlary then purchased for 291,000 pounds a bullding that had a 10 -year expected life and no salvage value and is to be depreclated using the straight-Iine method. Also on January 1,2020 , the subsidlary rented the bullding for three years to a group of local attorneys for 8,650 pounds per month. By year-end, rent payments totaling 86,500 pounds had been recelved, and 17,300 pounds was in accounts recelvable. On October 1,2020,3,700 pounds was pald for a repalr made to the bullding. The subsidlary transferred a cash dlvidend of 11,675 pounds back to Sullivan's Island Company on December 31, 2020. The functional currency for the subsidlary is the pound. Currency exchange rates for 1 pound follow. Prepare an income statement, statement of retained earnings, and balance sheet for this subsidlary in pounds and then translate these amounts into U.S. dollars. Complete this question by entering your answers in the tabs below. Prepare a Statement of Retained earnings. (Amounts to be deducted should be indicated by a minus sign.)