IN ADDITION, MAKE ONE CHANGE TO THE ASSUMPTIONS STATED IN THE PROBLEM. INCREASE ONE OF THE ASSET FAIR VALUES BY $10 (YOU CAN CHOOSE) OR DECREASE THE PAYMENT AMOUNT, BY A VALUE YOU CHOOSE. HOW DOES THIS CHANGE THE ANSWER?

Your supervisor asks you to analyze the potential purchase of Drew Company by your firm, Pierson, Inc. You are provided the following information (in millions): DREW COMPANY Pierson, Inc. Historical Historical Fair Cost-Based Cost-Based Value Current assets $ 70 $ 60 $ 65 Land 10 10 Buildings, net Equipment, net 20 40 Total assets $300 $130 $165 Current liabilities $120 $ 20 $20 Shareholders' equity 180 110 Total liabilities and equity $300 $130 Required: a. Prepare a pro forma combined balance sheet using purchase accounting. Note that Pierson pays $180 million in cash for Drew where the cash is obtained by issuing long-term debt