16. The Sizzling Grillhouse determines that due to changes in the business, it needs to upgrade its restaurant chains to offer different menu items and cater to a new clientele. The chain decides to remodel its stores by performing work on the buildings' structures. The work includes replacing the exterior walls with large windows, adding new glass enclosed salad bars, rebuilding the interior and exterior facades, replacing tile floors with oak flooring, and removing and rebuilding walls to provide more space for diners. This work costs $2M. The work also includes upgrades to increase the capacity of each restaurant's electrical system at a cost of $1,000,000 and the addition of new section 1245 property, including new seating booths, tables and chairs at a cost of $800,000. a. The entire cost of $3.8M will be expensed. b. The entire cost of $3.8M will be capitalized as part of the building. c. The entire cost of $3.8M will be capitalized as part of the building electrical system. d. The $2M cost and $1,000,000 cost will be capitalized as part of the building; and the seating booths, tables and chairs will be capitalized as tangible personal property. e. The $2M cost and $1,000,000 cost will be capitalized as part of the building; and the seating booths, tables and chairs will be expensed