Addresses the gonzo co

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Gonzo Co. owns a building in Georgia. The building's historical cost is $970,000, and $440,000 of accumulated depreciation has been recorded to date. During 2011, Gonzo incurred the following expenses related to the building.

Repainted the building $48,000
Major improvement to the plumbing 109,000
Replaced carpet in the plant's accounting offices 47,600
Added a 7,000 square foot lobby 234,600
Repaired a broken water main 155,800

1.) Which of the costs incurred by Gonzo Co. should be capitalized to the building account?

2.) What is the subsequent carrying amount of the building?

Reference no: EM1343818

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