Spectrum Ltd acquires Lambda Inc for $105 million cash. The balance sheets before the merger are:

Balance Sheet (in millions)	Spectrum	Lambda
Current assets	$110	$25
Property and equipment	$750	$150
Intangibles	$60	$10
Total assets	$920	$185
Current liabilities	$60	$6
Long-term debt	$600	$95
Capital stock	$100	$20
Retained earnings	$180	$62
Accumulated other comp. inc.	$(20)	$2
Total liabilities and equity	$920	$185

Lambda’s intangibles are undervalued by $15 million, and property is overvalued by $20 million.

Required: Adjust Spectrum’s retained earnings immediately following the merger.