Bagley Incorporateds statement of financial position as at July 31, Year 4, is as follows: BAGLEY INCORPORATED STATEMENT OF FINANCIAL POSITION At July 31, Year 4 Carrying Amount Fair Value Plant and equipment (net) $ 912,000 $ 1,055,000 Patents - 80,000 Current assets 457,000 509,000 $ 1,369,000 Ordinary shares $ 184,000 Retained earnings 518,000 Long-term debt 392,000 418,000 Current liabilities 275,000 275,000 $ 1,369,000 On August 1, Year 4, the directors of Bagley considered a takeover offer from Davis Inc., in which the corporation would sell all of its assets and liabilities. Daviss costs of investigation and drawing up the merger agreement would amount to $20,500. Required: (a) Assume that Davis made a $1,069,200 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 account field.) View transaction list Journal entry worksheet B Record the acquisition of net assets of Bagley Incorporated in Davis Inc' books.