Question

Calculate domestic income and national income.
1 ) rent and interest =5400
2) wages and salaries = 10000
3) undistributed profit=200
4) corporate tax=400
5) net factor income from abroad =1000
6)dividend =3000
7) sss contributed by er. =400
8)mixed income =400​

Answer 1

Answer:

Using Income Method,

a) Domestic Income (NDP at FC) = Compensation of employees (wages + social security contribution) + Operating Surplus {Rent + Interest + Profit (Corporate profit tax + Dividend + Undistributed profit)} + Mixed income of self employed 

= (10,000+400)+5,000+400+(400+3,000+200)+400 

= 10,400+9,000+400 

= 19,800

b) National Income (NNP at FC) = NDP at FC + Net Factor Income From Abroad 

= 19,800+1,000 

= 20,800