Question

Doug's stereo was stolen. The stereo cost 1,500 new but has a fair market value of 750. If Doug has a homeowners policy that covers losses for personal property for ACV, what amount is Doug entitled to recover _____________.

Answer 1

Doug is entitled to recover the actual cash value (ACV) of his stolen stereo, which is determined by the fair market value of the item at the time of the loss.

Step-by-step explanation:

Doug is entitled to recover the actual cash value (ACV) of his stolen stereo, as stated in his homeowners policy. The ACV is determined by taking into account the fair market value of the item at the time of the loss. In this case, the stereo cost $1,500 new but has a fair market value of $750, so Doug is entitled to recover $750.