Sam's furniture was destroyed by a fire.The furniture cost $1200 when it was purchased,but similar new furniture now costs $1800.Assuming the furniture was 50 percent depreciated,what is the actual cash value of Sam's loss?

Question

Quizplus · Accepted Answer

Since the furniture was 50% depreciated, the actual cash value of the furniture at the time of the loss is $1200/2 = $600. Therefore, the actual cash value of the loss is $1800 - $600 = $1200.

Sam's Furniture Was Destroyed by a Fire