(b) Assume that Davis issued 147,000 ordinary shares, with a market value of $9.60 per share, to Bagley for its net assets. Legal fees associated with issuing these shares amounted to $8,200 and were paid in cash. Davis had 167,000 shares outstanding prior to the tokeover (i) Prepare the journal entries in the records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A Record the acquisition of net assets of Bagley Incorporated in Davis Inc's books. B Record the payment of $8,200 legal fees for the issue of 147,000 equity shares at a market value of $9.60 per share. c Record the $21,000 cash paid for professional fees expense. c's Bagley incorporated's statement of financial position as at July 31 , Year 4 , is as follows: On August 1, Year 4, the directors of Bagley considered a takeover offer from Davis inc, whereby the corporation would sell all of its assets and liabilities. Davis's costs of investigation and drawing up the merger agreement would amount to $28,000. Required: (o) Assume that Davis made a $1,411,200 cash payment to Bagley for its net assets. Prepare the journal entries in the accounting records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first occount field.) A Record the acquistion of net assets of Bagley incorporated in Davis inc's books. b Record the $28,000 cash paid for professional fees expense. (ii) Prepare the statement of financial position of Bagley immediately after the sale