Fernando owns a bakery. The building has an unadjusted basis of $400,000, and Fernando qualifies as a "small taxpayer" for the purpose of the Tangible Property Regulations Safe Harbor for Small Taxpayers.

This year, Fernando had the roof replaced. Fernando may deduct this expense under the Safe Harbor for Small Taxpayers if the total he spent on repairs, maintenance, improvements, and similar activities is less than what amount?

$7,500

$8,000

$8,500

$9,000