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 2015,Bonzo incurred the following expenses related to the building:
$\begin{array}{lr}
\text { Repaired a broken water main } & \$ 81,500 \
\text { Major improvement to the HVAC system } & 75,000 \
\text { Added a 6,000 square foot employees' lounge } & 197,500 \
\text { Replaced the carpet in the purchasing department offices } & 21,300 \
\text { Repainted the building } & 25,000
\end{array}$
Required:
a.Which of the building related costs incurred by Bonzo Co.should be capitalized in 2015?
b.What is the subsequent carrying amount of the building?

Question

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 2015,Bonzo incurred the following expenses related to the building:
$\begin{array}{lr}
\text { Repaired a broken water main } & \$ 81,500 \
\text { Major improvement to the HVAC system } & 75,000 \
\text { Added a 6,000 square foot employees' lounge } & 197,500 \
\text { Replaced the carpet in the purchasing department offices } & 21,300 \
\text { Repainted the building } & 25,000
\end{array}$ 
Required:
a.Which of the building related costs incurred by Bonzo Co.should be capitalized in 2015?
b.What is the subsequent carrying amount of the building?

Quizplus · Accepted Answer

The Answer of 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 2015,Bonzo incurred the following expenses related to the building:
$\begin{array}{lr}
\text { Repaired a broken water main } & \$ 81,500 \
\text { Major improvement to the HVAC system } & 75,000 \
\text { Added a 6,000 square foot employees' lounge } & 197,500 \
\text { Replaced the carpet in the purchasing department offices } & 21,300 \
\text { Repainted the building } & 25,000
\end{array}$ 
Required:
a.Which of the building related costs incurred by Bonzo Co.should be capitalized in 2015?
b.What is the subsequent carrying amount of the building?

Bonzo CoOwns a Building in Pennsylvania Required: A

Bonzo CoOwns a Building in Pennsylvania Required:
A