On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SAT's retained earnings were $950,000. There was no acquisition differential. PAT accounts for its investment under the cost method. SAT sells inventory to PAT on a regular basis at a markup of 30% of selling price. The intercompany sales were $90,000 in Year 2 and $120,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $30,000 at the end of Year 2 and $30,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT chased from SAT amounting to $40,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $10,000. Both companies pay income tax at the rate of 40%. Selected account balances from the records of PAT and SAT for the year ended December 31, Year 3, were as follows: $ $ Inventory Accounts payable Retained earnings, beginning of year Sales Cost of sales Income tax expense PAT 440,000 650,000 2,450,000 4,050,000 3,150,000 130,000 SAT 350,000 370,000 1,150,000 2,550,000 1,750,000 100,000 Required: (a) Determine the amount to report on the Year 3 consolidated financial statements for the selected accounts noted above. (Omit $ sign in your response.) Inventory Accounts payable Retained earnings, beginning of year Sales Cost of sales Income tax expense