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 20X1, Gonzo incurred the following expenses related to the building: 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 Required: 1. Determine which of the costs incurred by Gonzo Co. should be capitalized and which should be expensed. 2. What is the subsequent carrying amount of the building prior to recording 20X1 depreciation expense? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine which of the costs incurred by Gonzo Co. should be capitalized and which should be expensed. Capitalized or Expensed? 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 Required 1 Required 2 >