Given the following data: depreciation = $450; net indirect business taxes = $400; employee compensation = $3,000; proprietor's income = $200; corporate profits = $400; net interest = $300; rental income = $50; national income equals
A)$3,100
B)$3,500
C)$3,550
D)$3,950
E)$4,400

Question

Quizplus · Accepted Answer

National income can be calculated as follows:
National income = employee compensation + proprietor's income + corporate profits + net interest + rental income + indirect business taxes
National income = $3,000 + $200 + $400 + $300 + $50 + $400
National income = $3,350
However, we need to subtract depreciation from national income to get the final answer:
Final answer = National income - Depreciation
Final answer = $3,350 - $450
Final answer = $3,900
Therefore, the best choice is D) $3,950.

Given the Following Data: Depreciation = $450; Net Indirect Business