On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SATs retained earnings were $1,700,000. 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 $230,000 in Year 2 and $260,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $130,000 at the end of Year 2 and $120,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $140,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $150,000. 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	$	580,000		$	1,100,000
Accounts payable		1,400,000			1,120,000
Retained earnings, beginning of year		3,200,000			1,900,000
Sales		4,800,000			3,300,000
Cost of sales		3,900,000			2,500,000
Income tax expense		280,000			50,000

Required:

(a) Determine the amount to report on the Year 3 consolidated financial statements for the selected accounts noted above.