Question

30. Calculate Depreciation from the Given Data:
Items Rs
NDP at MP 80,000
Indirect Taxes 10,600
GNP at FC 75,920
Factor income to abroad 700
Factor income from abroad 500
Subsidies 1770

Answer 1

Answer:

Formula: Depreciation = GNP at FC - NDP at MP - Factor income from abroad + Factor income to abroad + Indirect taxes - Subsidies

= 75920 - 80000 - 500 + 700 + 10600 - 1770

= 4950.

Answer 2

Answer:

The depreciation from the given data is 4950.

Explanation:

Given:

• NDP at MP = 80,000
• Indirect Taxes =  10,600
• GNP at FC = 75,920
• Factor income to abroad = 700
• Factor income from abroad = 500
• Subsidies = 1770

To Find:

Depreciation

Formula:

Depreciation = GNP at FC - NDP at MP - Factor income from abroad + Factor income to abroad + Indirect taxes - Subsidies

Solution:

We know that,

NDP at MP = 80,000Indirect Taxes =  10,600GNP at FC = 75,920Factor income to abroad = 700Factor income from abroad = 500Subsidies = 1770

Applying the formula,

Depreciation = GNP at FC - NDP at MP - Factor income from abroad + Factor income to abroad + Indirect taxes - Subsidies

$= 75920 - 80000 - 500 + 700 + 10600 - 1770$

$= 4950$

Thus, depreciation calculated from the given data is 4950.

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