On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SAT's retained earnings were $1,000,000. 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 $160,000 in Year 2 and $190,000 in Year 3. The total amount owing by PAT related to these. intercompany sales was $60,000 at the end of Year 2 and $50,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $70,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $80,000. 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 $ $ 510,000 700,000 2,500,000 400,000 420,000 Accounts payable Retained earnings, beginning of year 1,200,000 Sales 4,100,000 2,600,000 Cost of sales 1,800,000 3,200,000 180,000 Income tax expense 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 2