%%%%%%%% If the homeowner's policy covers 40% of the replacement cost...

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Accounting

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If the homeowner's policy covers 40% of the replacement cost and the actual cash value of the loss is $12,000, what would be the amount of recovery if the repair costs amount to $20,000?
Actual cash value: $12,000
Repair costs: $20,000
Coverage percentage: 40%
Replacement cost: ?
Amount of recovery: ?

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