Mark has a Homeowners 3 (special form) policy that provides $120,000 of insurance on his dwelling and $100,000 on personal property. The replacement cost of the home is $200,000. Assume the coinsurance requirement is 80% and ignore any deductible. Treat each case separately

4. How much will Mark collect if his sofa, with a replacement value of $2,500 but an actual cash value of $1,800, is destroyed in a fire.