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 2017, 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 office's.....................47,600

Added a 7,000-square-foot lobby....................................234,600

Repaired a broken water main........................................155,800

Required:

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 prior to recording 2017 depreciation expense?