Kathy owns an accounting firm. One evening, a fire broke out in the building where Kathy's business was located, damaging some of Kathy's business personal property, including a large conference table that had to be replaced. Kathy bought the table 3 years prior to the fire for $4,400. The replacement cost of the conference table is $5,000. The table has depreciated 20% in value since its purchase 3 year ago.

How much will Kathy's commercial property insurer pay her for the damaged conference table if this loss is paid on the basis of Actual Cash Value (ACV)? You may assume this is a covered loss and no deductible applies to this scenario.

$2,000.

$4,000.

$4,400.

$5,000.