Bagley Incorporated's statement of financial position as at July 31 , Year 4, is as follows: Un August 1, rear 4, ,ne direciors ol bagley considerea a lakeover oller irom Vavis inc,, in wnicn ine corporalion woula sell all oI ils assets and liabilities. Davis's costs of investigation and drawing up the merger agreement would amount to $21,000. (a) Assume that Davis made a $1,090,600cashpaymenttoBagleyforitsnetassets.Preparethejournalentriesintheaccounting records of Davis to record the business combination. associated with issuing these shares amounted to $6,800andwere paid in cash. Davis had 153,000sharesoutstanding.priortothe takeover. (i) Prepare the journal entries in the records of Davis to record the business combination. (ii) Prepare the statement of financial position of Bagley immediately after the sale