Looking for someone to provide me with a brief-explanation on what calculation was performed to reach the answer: $14,000.

I am looking for a non-AI generated response! Thanks.

17. David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a roof with a replacement value of $16,000 but an actual cash value of $10,000 is destroyed in a fire? A) $10,000 B) $12,000 C) $14,000 D) $16,000 Answer: C