David has a homeowners 3 policy that provides 360000 of, Financial Management

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David has a homeowners 3 policy that provides 360000 of

David has a Homeowners 3 policy that provides $360,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a kitchen with a replacement value of $24,000 but an actual cash value of $18,000 is destroyed in a fire?

$18,000

$24,000

$27,000

$28,000

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