Which of the following actions is a property manager legally permitted to perform?

A property manager's role is primarily to manage the day-to-day operations of a property and act on behalf of the property owner within the scope of the authority granted to them. While they have certain responsibilities, there are limits to the specific actions they can take regarding financial and capital decision-making.

Preparing depreciation schedules typically falls under the purview of an accountant or a financial consultant, as this requires expertise in tax laws and financial reporting. Property managers may provide information or documentation to assist in the process but are not generally authorized to prepare these schedules themselves.

Making capital improvements also usually requires the property owner's direct involvement or approval, especially for significant expenditures that can affect the property's financial standing. While property managers can recommend capital improvements based on their operational perspective, the authority to make such decisions lies primarily with the property owner.

Given these roles and limitations, a property manager is not legally permitted to take either of these actions without explicit permission or the appropriate qualifications. Therefore, the answer is correct in indicating that a property manager should not engage in preparing depreciation schedules or making capital improvements without the necessary backing or authority.