Final answer:
The bike belongs to Kim because it was originally stolen by John. Any subsequent improvements John made do not transfer ownership of the stolen property to him.The correct option is 2.
Step-by-step explanation:
The bike belongs to Kim because John stole it. In the given scenario, regardless of the improvements John has made to the bicycle, the bike was originally stolen. The act of theft did not transfer the ownership rights from Kim to John. Under the law, stolen property remains the property of the person from whom it was taken. Transforming the appearance or functionality of the bike does not change the fact that the bike was not lawfully acquired. Thus, the original owner, Kim, retains her right to claim her property, regardless of any improvements made after the theft.