Given are the following sets of accounts: RM (Million) Compensation to employees 5969.5 Proprietor’s income 756.5 Corporate profits 787.4 Net interest 684.2 Rental 142.4 Depreciation 1393.5 Indirect Taxes 44.4 Subsidies 22.6 Net factor payments to the rest of the world 9.6 Calculate the GDP using the income method.

Given are the following sets of accounts: RM (Million) Compensation to employees 5969.5 Proprietor’s income 756.5 Corporate profits 787.4 Net interest 684.2 Rental 142.4 Depreciation 1393.5 Indirect Taxes 44.4 Subsidies 22.6 Net factor payments to the rest of the world 9.6 Calculate the GDP using the income method.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 2QP

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Question

Given are the following sets of accounts:

RM (Million)

Compensation to employees 5969.5

Proprietor’s income 756.5

Corporate profits 787.4

Net interest 684.2

Rental 142.4

Depreciation 1393.5

Indirect Taxes 44.4

Subsidies 22.6

Net factor payments to the rest of the world 9.6

Calculate the GDP using the income method.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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