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Hi there. I just need help with the Inventory. I did.. $570,000 + 1,000,000 - 39,000 = $1,531,000 This is incorrect. Please help and thanks in advance! On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SAT's retained earnings were $1,600,000. 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 $220,000 in Year 2 and $250,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $120,000 at the end of Year 2 and $110,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $130,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $140,000. 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 570,000 1,300,000 3,100,000 4,700,000 3,800,000 180,000 SAT $ 1,000,000 1,020,000 1,800,000 3,200,000 2,400,000 350,000 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.) 1531000 Inventory Accounts payable Retained earnings, beginning of year 2210000 3258940 Sales 7650000 Cost of sales 5953000 Income tax expense 528800

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