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Susan purchased a living room set for $ 5 , 0 0 0 . Susan s home and the contents were destroyed by a fire.

Susan purchased a living room set for $5,000. Susans home and the contents were destroyed by a fire. At the time of the loss, the living room set was worth $3,000 due to depreciation. Replacement furniture will cost $6,000. If the living room set was insured on an actual cash value (ACV) basis, how much will Susan collect for this loss? Assume a $250 deductible applies to the loss.

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