Bagley Incorporated's statement of financial position as at July 31, Year 4, is as follows: BAGLEY INCORPORATED STATEMENT OF FINANCIAL POSITION At July 31, Year 4 Fair Value Carrying Amount Plant and equipment (net) $ 918,000 Patents Current assets $ 1,061,000 86,000 463,000 515,000 $ 1,381,000 Ordinary shares $ 190,000 Retained earnings Long-term debt Current liabilities 512,000 398,000 281,000 424,000 281,000 $ 1,381,000 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 $23,500.