Rasmus owns a rental property. His adjusted basis at the beginning of 2021 was $111,350. During the year, he incurred the following expenses:

Exterior paint, $3,500.

New storm windows, $2,200.

New water heater, $800.

New vinyl flooring, $2,600.

What is his new adjusted basis in the property?

$114,350

$114,750

$116,950

$120,450

Which of the following expenses, when incurred after a rental property has been placed in service, will impact a taxpayer's adjusted basis?

New living room furniture purchased.

Added a deck over the existing patio slab.

Painted the exterior of the house.

Repaired a leaky bathroom faucet.