*Be sure to include GOODWILL and NON-CONTROLLING INTEREST.*

Pharma Company (Pharma) is a pharmaceutical company operating in Winnipeg. It is developing a new drug for treating multiple sclerosis (MS). On January 1, Year 3, Benefit Ltd. (Benefit) signed an agreement to guarantee the debt of Pharma and guarantee a specified rate of return to the common shareholders. In return, Benefit will obtain the residual profits of Pharma. After extensive analysis, it has been determined that Pharma is a controlled special-purpose entity and Benefit is its sponsor The balance sheets (in millions) of Benefit and Pharma on January 1, Year 3, were as follows Benefit Pharma Fair Carrying Carrying value amount amount Current assets Property, plant, and equipment Intangible assets $ 490 $ 90 $ 90 720 240 250 130 100 150 $1,340 $ 430 $490 $ 305 $ 220 $220 645 220 225 Current liabilities Long-term debt Common shares Retained earnings 90 300 11) $1,340 S 430 An independent appraiser determined the fair values of Pharma's noncurrent assets. The appraiser was quite confident with the appraised value for the property, plant, and equipment but had some reservations in putting a specific value on the intangible assets Required Prepare a consolidated balance sheet at January 1, Year 3, assuming that the agreement between Benefit and Pharma established the following fair values for the common shares of Pharma (a) $45 million (b) $40 million (C) $55 million