2. Radical Hardware Store is insured by Deluxe Insurer under a Building and Personal Property Coverage Form (BPP). Radical purchased BPP Replacement Cost optional coverage for the building and business personal property. The store sustained fire damage, causing the following losses:
• Building - $40,000 replacement cost, $31,000 actual cash value.
• Business personal property - $20,000 replacement cost, $6,000 actual cash value.
Radical made no repairs to the damaged property and reported the claim 15 months after the fire. What is the amount that Deluxe will pay under the claim?