Titan Corp buys Kappa Ltd for $85 million. The balance sheets before the merger show:

Balance Sheet (in millions)	Titan	Kappa
Current assets	$110	$20
Property and equipment	$650	$140
Intangibles	$50	$10
Total assets	$810	$170
Current liabilities	$45	$6
Long-term debt	$500	$90
Capital stock	$80	$25
Retained earnings	$185	$45
Accumulated other comp. inc.	$(20)	$4
Total liabilities and equity	$810	$170

Kappa’s equipment is undervalued by $30 million, and it has unreported intangibles valued at $12 million.

Required: Reconcile Titan’s retained earnings immediately following the merger.