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Bonzo Co. owns a building in Pennsylvania. The historical cost of the building is $1,050,000 and $540,000 of accumulated depreciation has been recorded to
Bonzo Co. owns a building in Pennsylvania. The historical cost of the building is $1,050,000 and $540,000 of accumulated depreciation has been recorded to date. During 20X1, Bonzo incurred the following expenses related to the building: Repaired a broken water main Major improvement to the HVAC system Added a 6,000 square foot employees' lounge $ 81,500 75,000 197,500 Replaced the carpet in the purchasing department offices Repainted the building 21,300 25,000 Required: a. Which of the building related costs incurred by Bonzo Co. should be capitalized in 20X1? b. What is the subsequent carrying amount of the building?
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