Subsidiary manufactures various types of plastic products. It purchases its raw materials from different

suppliers. Parent sells some of these raw materials to Subsidiary at a markup of 30% on cost. Sales of raw materials by Parent to Subsidiary were $300000 and $450000 in 2018 and 2019, respectively. Subsidiary still had the following inventory bought from Parent left at year-end:

2018: $120000

2019: $90000

Subsidiary sells some of the plastic products it manufactures to Parent at a markup of 20% on cost, which in turn sells it to customers. Sales of plastic products by Subsidiary to Parent were $150000 and $200000 in 2018 and 2019, respectively. Parent still had the following inventory bought from Subsidiary left at year end.

2018: $37500

2019: $26400

Parent still owed Subsidiary $45000 on December 31, 2019.

Subsidiary sold a piece of land with a carrying value of $300,000 to Parent during 2018 for $220000 During 2019, Parent sold 25% of this land to a developer for $67,000.

Questions:

How to account for inter company transactions? (raw material, final products, the sale of land and management fee)?