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Question
Calculate the national income and net domestic product at factor cost from the following data:
| (₹ in crore) | |
| (i) Wages and salaries | 120 |
| (ii) Rent | 60 |
| (iii) Interest | 25 |
| (iv) Dividend | 15 |
| (v) Undistributed profit | 50 |
| (vi) Corporation tax | 30 |
| (vii) Mixed income | 20 |
| (viii) Net factor income earned from abroad | 10 |
| (ix) Depreciation | 5 |
Numerical
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Solution
Given Data: Wages and Salaries = ₹ 120
Rent = ₹ 60
Interest = ₹ 25
Dividend = ₹ 15
Undistributed profit = ₹ 50
Corporation tax = ₹ 30
Mixed income = ₹ 20
Net factor income earned from abroad = ₹ 10
Depreciation = ₹ 5
Formula: Net Domestic Product at Factor Cost NDPFC = Compensation of employees + Rent + Interest + Mixed income + Profit (i.e., Dividend + Undistributed profit + Corporation tax)
= ₹ 120 + ₹ 60 + ₹ 25 + ₹ 20 + (₹ 15 + ₹ 50 + ₹ 30)
= ₹ 120 + ₹ 60 + ₹ 25 + ₹ 20 + ₹ 95
= ₹ 320 crore
National Income NNPFC = NDPFC + Net Factor Income from Abroad
= ₹ 320 + ₹10
= ₹ 330 crore
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