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 2008, Gonzo incurred the following expenses related to the building:

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?

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