At a seminar covering the ISO building and personal property form, CP 00 10 04 02, the following problem on coinsurance was presented:

There was a total loss by fire to a building with a replacement cost of $85,000, an actual cash value of $70,000, a $50,000 limit of insurance with replacement cost coverage, a $250 deductible and 80 percent coinsurance. Following the example included in the coinsurance clause of form CP 00 10, these steps were used to determine the insurer's liability under the policy:

(A)     If the building is replaced: