What is the amount of the expected insurance payout

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ABC (Pty) Ltd suffered damage to its office building when a fire broke out. The event is covered in the insurance policy. The building was insured for R10 000 000. The market value of the property at the date when the policy was renewed was R9 500 000. The assessor when evaluating the property, determined that the replacement value is currently R12 500 000, and that the damage was R7 500 000. What is the amount of the expected insurance payout?

Reference no: EM133270495

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