Which of the following statements best defines the term "value in use"?

The concept of "value in use" pertains to the current operational worth of a property based on its actual use. This value takes into account the income or benefits that the property generates in its current state and under its current conditions. For instance, a commercial property that is currently leased to a business has a specific value in use determined by the revenue it produces from that lease, the expenses related to the property, and how well it meets the needs of the tenant.

This definition emphasizes the practical, day-to-day function of the property as opposed to speculative or theoretical values that might arise from market trends or potential future developments. Thus, the focus is on existing operations rather than what the property could potentially unlock if changes were made, which is often associated with future development or other scenarios that might increase value, such as improvements or zoning changes.

The other options revolve around different aspects of property value that do not align with the specific meaning of "value in use." The definition of the highest price a property could attain in a competitive market relates more to market value rather than use, the price set by local government pertains to assessed value for taxation rather than operational worth, and potential future worth is more aligned with investment value or speculative value rather than the immediate use