Q15

How much would a homeowner receive with actual cash-value coverage and replacement cost coverage for a three-year old sofa destroyed by a fire? The sofa would cost

$1,180

to replace today, whereas it cost

$1,025

three years ago, and it has an estimated life of six years.

With actual cash-value coverage, the amount the owner would receive for the sofa would be?

(Round to the nearest dollar.)With replacement coverage, the amount the owner would receive for the sofa would be?

(Round to the nearest dollar.)