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) $ 918,000 $ 1,061,000 Patents - 86,000 Current assets 463,000 515,000 $ 1,381,000 Ordinary shares $ 190,000 Retained earnings 512,000 Long-term debt 398,000 424,000 Current liabilities 281,000 281,000 $ 1,381,000 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