6. Pacesetter Company has experienced a number of losses. Calculate how much the insurer will pay in each part.

a. Pacesetters business personal property is insured on an actual cash value basis. A fire damaged the company office. A copy machine was destroyed by the fire. The copier cost $5,000 when it was purchased. At the time it was destroyed, it was worth $3,500 because of depreciation. A comparable replacement copier will cost $6,000. The property insurance policy includes a $500 deductible. How much will the insurer pay Pacesetter to settle this claim? (2 points)

b. A windstorm damaged the building where maintenance work in performed on Pacesetter vehicles. The building was insured for $140,000 under a property insurance policy that included an 80 percent coinsurance clause. The building was valued at $200,000 at the time of a windstorm loss. The wind damage was $50,000. This property insurance coverage includes a $2,500 deductible. How much will the insurer pay to settle this claim? (2 points)