Question
Assume that a building has a replacement cost of $250,000 but is insured for only $150,000. The roof on the house is 10 years old
Assume that a building has a replacement cost of $250,000 but is insured for only $150,000. The roof on the house is 10 years old and has a useful life of only 20 years. The roof is severely damaged by hail and needs to be replaced. The cost of the new roof is $20,000. Ignoring the deductible. What is the cash value?
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Actual cash value takes in to account the depreciati...
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
