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    Question

    Calculate Domestic Income:

    cellspacing="0" cellpadding="0"> Items Rs in crore Compensation of employees 2000 Rent and interest 800 Indirect taxes 120 Corporation Tax 460 Consumption of fixed capital 100 Subsidies 20 Dividend 940 Undistributed profits 300 Net factor income to abroad 150 Mixed income 200
    A 4000 Correct Answer Incorrect Answer
    B 4700 Correct Answer Incorrect Answer
    C 5000 Correct Answer Incorrect Answer
    D 6000 Correct Answer Incorrect Answer

    Solution

    Profit=Dividend + Corporation Tax + Undistributed profits = 940 + 460 + 300 = 1700

    Operating Surplus = Rent + Interest + Profit = 800 + 1700 = 2500

    Domestic Income = NDP at fc = Compensation of employees + Mixed income + Operating Surplus

    = 2000 + 200 + 2500 = 4700

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