On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SATs retained earnings were $1,400,000. 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 $200,000 in Year 2 and $230,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $100,000 at the end of Year 2 and $90,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $110,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $120,000. 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	$	550,000		$	800,000
Accounts payable		1,100,000			820,000
Retained earnings, beginning of year		2,900,000			1,600,000
Sales		4,500,000			3,000,000
Cost of sales		3,600,000			2,200,000
Income tax expense		280,000			150,000

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