Question

B) calculate compensation of employees from the following data:profits after tax 20interest 45 gross domestic product at market price 200goods and services tax 10consumption of fixed capital 50rent 25corporate tax 5​

Answer 1

Answer:

Explanation:

NDP at FC = GDP at MP - consumption of fixed capital - GST

= 200 - 50 - 10

= 140

NDP at FC = profit after tax + interest + rent + compensation of employees + corporation tax

140 = compensation of employees +20+45+25+5

140 = compensation of employees + 95

Compensation of employees = 140-95

Compensation of employees = 45

Answer 2

The answer is 45

Given,

Profit after tax = 20

Interest = 45

Gross domestic product at market price = 200

Goods and service tax = 10

Consumption of fixed capital / depreciation = 50

Rent = 25

Corporate tax = 5

To Find,

Compensation of employees

Solution,

Net domestic product at factor cost = Gross domestic product at market price - depreciation - goods and service tax

= 200 - 50 - 10

= 140

Net domestic product at factor cost = Profit after tax + Interest + Rent + Compensation of employees + Corporation tax

∴ 140 = 20 + 45 + 25 + 5 + Compensation of employees

⇒ 140 = 95 +  Compensation of employees

⇒ Compensation of employees = 140 - 95

∴ Compensation of employees = 45

Hence, the answer is 45.