Question

tina is the sold owner of tina's lawn Mowing, incorporated (TLM). in one year TLM collects $1,000,000 from customers to mow their lawns. TLM's equipment depreciates in value of $125,000. TLM pays $600,000 to its workers, who pay $50,000 in corporate income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in the business of finance future expansion . How much does this economic activity contribute to each of the following ? a.GDP b.NNP c.National income d.Compensation of employees e.Proprietors' income f.Corporate profits g.Personal income h.Disposable personal income

Answer 1

Answer:

A) One million dollars;

B) 875,000 dollars (one million minus 125,000 for depreciation);

C) 875,000 dollars;

D) 600,000 dollars;

E) Zero dollars;

F) 75,000 dollars;

G) 150,000 dollars;

H) 90,000 dollars.