Spencer has a Homeowners HO-3 policy that provides $320,000 of insurance on his dwelling, which has a current replacement value of $500,000. Ignoring any deductible, how much will Spencer collect if his kitchen with a replacement value of $30,000 but an actual cash value of $26,000 is destroyed in a fire?

(A) $20,800
(B) $24,000
(C) $26,000
(D) $28,000
(E) $30,000