Replacement cost less depreciation defines which of the following?

The definition of "replacement cost less depreciation" corresponds to actual cash value. Actual cash value is calculated by determining the replacement cost of an asset and then subtracting any depreciation that has occurred. This method reflects the current value of the item by accounting for wear and tear, age, and obsolescence, providing a more accurate representation of what that item is worth at the time of loss compared to its original cost or replacement cost.

In contrast, replacement cost refers to the amount needed to replace an asset without any deduction for depreciation. Market value is the price at which an asset would trade in a competitive auction setting, including factors like supply and demand, but not necessarily reflecting the depreciated value. Future value refers to the worth of an investment at a specified date in the future, based on its current value and an assumed rate of growth. Thus, actual cash value is the term that aligns with the concept of replacement cost less depreciation.