How much will an actual cash value policy indemnify Clara for her stolen harp?

For an actual cash value (ACV) policy, the amount of indemnity is determined by the replacement cost minus depreciation. This method reflects the current market value of the insured property at the time of loss. In Clara's case, if an ACV policy has a value of $10,000, it implies that this is either the market value of the harp at the time it was stolen or the maximum payout minus any depreciation that might apply.

Therefore, choosing the answer of $10,000 is appropriate when considering that this amount is specifically the valuation reflected in the actual cash value policy, which ensures Clara receives a fair compensation that reflects the loss of her harp, accounting for depreciation as necessary. The other amounts likely reflect alternative valuations, such as the replacement cost or other figures not connected to the ACV calculation for this scenario.