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 Carrying Carrying Fair Amount Amount Value Current assets $ 430 $ 50 $ 50 Property, plant, and equipment 640 200 Intangible assets Current liabilities 110 80 210 130 $ 1,180 $ 330 $ 390 $ 265 $ 180 565 160 $ 180 165 Long-term debt Common shares Retained earnings 70 280 $ 1,180 1 (11) $ 330 An independent appraiser determined the fair values of Pharma's non-current assets. The appraiser was quite confident of 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: (Enter your answers in millions of dollars. Leave no cells blank - be certain to enter "O" wherever required. Omit $ sign in your response.) (a) $45 million (b) $40 million (c) $55 million