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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
LO12 Jorge and his wife own a beachfront vacation home in Savannah, Georgia. Dur- ing the year, high winds from a tropical storm shatter a sliding glass door and rain from the storm causes extensive water damage to the kitchen. Fortunately, during a calm in the storm, Jorge is able to board up the door, which limits the water damage to the kitchen. The items damaged in the storm are:
Â
|
 |
Cost |
Value Before |
Value After |
Insurance Proceeds |
|
Kitchen furniture |
$2,100 |
$1,400 |
$400 |
$650 |
|
TV |
250 |
200 |
-0- |
125 |
|
Refrigerator |
1,000 |
950 |
100 |
800 |
|
Linoleum flooring |
1,600 |
900 |
-0- |
500 |
In addition, Jorge pays $625 to replace the sliding glass door. The insurance com- pany will not reimburse him for the cost of the new door because the old  sliding glass door did not meet the company’s standards for a hurricane area. What is the amount of Jorge’s casualty loss before considering any annual limitations that may apply?
Â
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