Repair the Siding
Remove the nails in the corner cap.
Score down the damaged lap siding with a utility knife.
Remove the nails on the lap board then use the claw of the hammer to split the board down the center (Image 1).
Once all the nails are removed from the adjoining board, the damaged one should just pull out.
Take the replacement board, fit it in place (Image 2) and nail it in with a hammer using galvanized nails. Be sure to nail into the existing holes on the adjacent siding. Nail straight down on the replacement board in order to hit studs. Fill in the nail holes.