Problem: 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 $ 81,500 Major improvement to the HVAC system 75,000 Added a 6,000 square foot employees' lounge 197,500 Replaced the carpet in the purchasing department offices 21,300 Repainted the building 25,000
Required: Which of the building related costs incurred by Bonzo Co. should be capitalized in 20X1? What is the subsequent carrying amount of the building?