On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SATs 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 $40,000 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:

	PAT			SAT
Inventory	$	450,000		$	360,000
Accounts payable		660,000			380,000
Retained earnings, beginning of year		2,460,000			1,160,000
Sales		4,060,000			2,560,000
Cost of sales		3,160,000			1,760,000
Income tax expense		140,000			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