Dropdown 1 & 2 Options

1. Is Not

2. Is

3. Calculating actual cash value Aa Aa E Actual Cash Value versus Replacement Cost Coverage The following table gives a partial list of Alex's significant property (that is, although only the first three items are listed within each category, the totals at the bottom of the table include the prices of unlisted property items). Purchase Price Replacement Cost ACV Item Furniture Couch set Outdoor lawn furniture Dining room table and chairs $3,500 3,125 1,000 $875 1,563 500 $3,850 3,750 1,200 Appliances 900 DVD player Sound system 750 125 1,000 375 75 400 150 1,200 Furnishings Antique rugs Sculptures Throw blankets and pillows 11,250 10,000 375 3,375 12,000 225 13,500 12,000 450 TOTAL: $46,688 $30,347 $56,026 Alex has a $59,000 HO-1 form insurance policy. No additional endorsements or floaters have been added to the policy. Therefore, the actual cash value (ACV) of his property covered under this policy and the replacement cost of his property covered. One of his more valuable items is a custom electric guitar he purchased when his band starting gaining popularity. He purchased the guitar 6 years ago for $2,500, and its total life expectancy is 10 years. The actual cash value (ACV) of the guitar is $1,430 $2,500 $900 $1,000