On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SAT's retained earnings were $890,000. 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 $140,000 in Year 2 and $170,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $40,000 at the end of Year 2 and $30,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $50,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $60,000. 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 Required: PAT SAT $ 490,000 590,000 2,390,000 $ 290,000 310,000 1,090,000 3,990,000 2,490,000 3,090,000 280,000 1,690,000 350,000 (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