Problem 2 Placer Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 110,000 pounds. The subsidiary immediately borrowed 265,000 pounds on a five-year note with 5 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 375,000 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, 2020, the subsidiary rented the building for three years to a group of local attorneys for 9,250 pounds per month. By year-end, rent payments totaling 92,500 pounds had been received, and 18,500 pounds was in accounts receivable. On October 1, 2020, 4,900 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,375 pounds back to Placer Company on December 31, 2020. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow: January 1, 2020 October 1, 2020 $2.50=1 Pound 2.55=1 2.56=1 December 31, 2020 Average for 2020 2.54 1 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. You can refer to Problem 10-26 for guidance on this