Ned leased a space for five years with a five-year option for his plumbing business. He spent $5,500 to make improvements to make the space useful for his business, and he does not wish to claim any bonus depreciation. Ned started using the building in January of 2022. How should these costs be recovered?

a) Take a general business credit of $5,500.

b) Depreciate the improvements over 15 years.

c) Depreciate the improvements over 39 years.

d) Deduct the costs this year as repair expenses.