Question 5 of 40.

Which of the following taxpayers made an improvement to their property that they must capitalize? Do not consider whether any of the taxpayers will claim the safe harbor election for small taxpayers.

Melody replaced several shingles on the roof of her bed and breakfast that had blown off over the last year.

Brian repainted the interior of his restaurant to update it to a more modern color scheme.

Heather paved the gravel parking lot behind her office building to make it easier to park on.

Tim replaced the brake pads on the car he uses for business. He expects to do this every other year in order to keep the car in good operating condition.