Question

Calculate NNP at fc
1-net current transfer from rest of the world=80
2-wages and salaries=600
3-net indirect tax=75
4-net factor income from abroad=—20
5-rent and intrest=160
6-corporate tax=40
7-mixed income=280
8-retained earning=60
9-dividend=20
10-consumption of fixed capital=120

Answer 1

Income method is provided below.

Explanation:

Income method:-

NDP (fc):-

Wages and salaries + ( Divide Income + Retained earning + rent and interest)

NDP(fc) :-

 600+(20+160+60)+280

 840+280 =1120

NNP (fc) :-

NDP(fc) + NFIA

1120+(-20)

 1120 - 20

 = 1100 crore .

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Answer 2

NDP fc = wages and salaries + Rent and Income + Corporation Tax + Mixed Income + Undistributed Profits + Dividend

= 600 + 160 + 40 + 280 + 60 + 20

= 1160 cr.

NNP fc = NDP fc + NFIA

= 1160 + (-20)

= 1140 cr.