Problem 2. Park Corporation, a US company, formed a British subsidiary on January 1, 2020, by investing 450,000 in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Sar Corporation, purchased real property on April 1, 2020, at a cost of 500,000, with 100,000 allocated to land and 400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The British pound is Sar's functional currency and its reporting currency. The British economy does not have high rates of inflation. Exchange rates for the pound on various dates were:

January 01, 2020	1 = $1.50
April 01, 2020	1 = $1.51
December 31, 2020	1 = $1.58
2020 average rate	1 = $1.56

Sar's adjusted trial balance is presented below for the year ended December 31, 2020.

		In Pounds
Debits:
Cash		220,000
Accounts receivable		52,000
Inventory		59,000
Building		400,000
Land		100,000
Depreciation expense		7,500
Other expenses		110,000
Cost of goods sold		220,000
Total debits		1,168,500
Credits
Accumulated depreciation		7,500
Accounts payable		111,000
Common stock		450,000
Retained earnings		0
Equity adjustment		0
Sales revenue		600,000
Total credits		1,168,500

Instructions:Prepare Sar's:

1. Translated trial balance;
2. Translated income statement; and
3. Translated balance sheet.