On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SAT's retained earnings were $960,000. 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 $100,000 in Year 2 and $130,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $50,000 at the end of Year 2 and $40,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $10,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $20,000. 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 450,000 660,000 2,460,000 4,060,000 3,160,000 140,000 SAT 360,000 380,000 1,160,000 2,560,000 1,760,000 110,000 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