Horizon Ltd. acquires Epsilon Inc. for $65 million cash. The balance sheets before the merger show:

Balance Sheet (in millions)	Horizon	Epsilon
Current assets	$70	$12
Property and equipment	$500	$100
Intangibles	$35	$7
Total assets	$605	$119
Current liabilities	$30	$2
Long-term debt	$400	$50
Capital stock	$50	$10
Retained earnings	$125	$55
Accumulated other comp. inc.	$(15)	$2
Total liabilities and equity	$605	$119

Epsilon’s property is overvalued by $20 million, and intangibles are undervalued by $5 million.

Required: Prepare Horizon’s balance sheet immediately following the merger.