A Building Owned by X Company Is Insured for $100

Multiple Choice

A building owned by X Company is insured for $100 000,but the insurance contract contains an 80 percent co-insurance clause.The building is damaged by fire to the amount of $20 000.The depreciated replacement value of the insured property is $250 000.The insurance company will then pay

A) $8000.
B) $15 000.
C) $5000.
D) $10 000.
E) $20 000.