QUESTION $4(10$ marks$)$

Financial statements of Poppy Corp. and its subsidiary Snowdrops Inc. on December $31,2023$ are shown

below. On January $1,2023,$ Poppy acquired $1600$ common shares of Snowdrops for $$225,000$ cash.

OTHER INFORMATION:

On January $1,2023,$ the balance sheet of Snowdrops showed the following shareholders equity:

$$6$ Preferred shares, cumulative, redeemable at $$108$ per share

Issued and outstanding $1,000$ shares

Common shares, $(2,000$ shares