On January 2, 2013, McCoy Corporation's stockholders' equity accounts were as follows:

Common Stock, $1 par $50,000

Additional paid-in- capital 100,000

Retained Earnings 225,000

McCoy's assets and liabilities had book values equal to market values except for inventory, land and building which were undervalued by $30,000, $20,000, and $25,000, respectively. On January 2, 2013, Express Corp. purchased all of McCoy's common stock for $475,000 cash. There was no contingent consideration in the agreement to combine.

Required: Prepare all necessary consolidation entries for a January 2, 2013 balance sheet.