Your client has a $220,000 Homeowners Comprehensive policy with $200 deductible. He/she is planning to build a new garage and begins to buy the necessary building materials. $2,000 worth of materials is stored in his/her backyard and $3,000 worth in his/her father's garage on the next street. The father's garage is totally destroyed by a fire, along with your client's materials stored in it. How much can your client collect under his/her policy?
Your client has a $220,000 Homeowners Comprehensive policy with $200 deductible. He/she is planning to build a new garage and begins to buy the necessary building materials. $2,000 worth of materials is stored in his/her backyard and $3,000 worth in his/her father's garage on the next street. The father's garage is totally destroyed by a fire, along with your client's materials stored in it. How much can your client collect under his/her policy?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Your client has a $220,000 Homeowners Comprehensive policy with
$200 deductible. He/she is planning to build a new garage and begins to
buy the necessary building materials. $2,000 worth of materials is stored
in his/her backyard and $3,000 worth in his/her father's garage on the
next street. The father's garage is totally destroyed by a fire, along with
your client's materials stored in it. How much can your client collect
under his/her policy?
$2,800.00
Nothing.
$3.000.00
$2.400.00
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