Mike renovated his rental home and has the following expenditures: $1,200 for removal and replacement of drywall, $500 for painting the drywall, $600 for an electrician to run cable and replace light fixtures, $150 for light bulbs, and $13,000 to replace all the tile floors. How much of the renovation will be considered an improvement if no special election is made? 1) $13,000 2) $14,200 3) $14,800 4) $15,450 ($14,200 is wrong)