On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SAT's retained earnings were $940,000. 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 $80,000 in Year 2 and $110,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $30,000 at the end of Year 2 and $20,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $30,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $40,000. 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 SAT $ 40,000 640,000 $ 340,000 360,000 2,440,000 1,140,000 4,040,000 2,540,000 3,140,000 120,000 1,740,000 90,000 Required: (a) Determine the amount to report on the Year 3 consolidated financial statements for the selected accounts noted above. (Input all amounts as positive values. Omit $ sign in your response.) Inventory Accounts payable Retained earnings, beginning of year Sales Cost of sales Income tax expense $