On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SATs retained earnings were $1,500,000. 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 $210,000 in Year 2 and $240,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $110,000 at the end of Year 2 and $100,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $120,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $130,000. 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:

	PAT			SAT
Inventory	$	560,000		$	900,000
Accounts payable		1,200,000			920,000
Retained earnings, beginning of year		3,000,000			1,700,000
Sales		4,600,000			3,100,000
Cost of sales		3,700,000			2,300,000
Income tax expense		80,000			250,000

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

(b) Not available in Connect.