please answer asap. stuck on question [b) i) and ii)]

N 20 ponts 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 Carrying Fair Amount Value Plant and equipment (net) 5 914,00 $1,057,600 Patents 82,000 Current assets 459,20 511,000 $1,373,000 Ordinary Shares 186,000 Retained earnings 516,000 Long-term debt 394, ce 420, eee Current liabilities 277.ee 277.000 $1,373,220 09-11-06 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 $21,500 Required: (a) Assume that Davis made a $1.112 200 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.) Answer is complete and correct. No Transaction General Journal Credit A 1 Plant and equipment Patents Current asse Debit 1,057,000 82.000 511.000 oo 2 Answer is complete and correct. No Transaction General Journal Debit Credit Plant and equipment Patents Current assets Goodwill Long-term debt Current liabilities Cash Sololololo 1,057,000 82,000 511,000 159,200 3:30 420,000 277,000 1,112,200 B 2 Professional fees expense Cash 21,500 OO 21,500 (b) Assume that Davis issued 134,000 ordinary shares, with a market value of $8130 per share, to Bagley for its net assets. Legal fees associated with issuing these shares amounted to $6.900 and were paid in cash. Davis had 154,000 shares outstanding prior to the () 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.) takeover. No Transaction General Journal Debit Credit (1) Prepare the statement of financial position of Bagley immediately after the sale. Answer is not complete. Bagley Incorporated Statement of Financial Position August 1 Year 4 Assets $ 0 Liabilities and Equity 0