Suppose the GDP at market price of a country in a particular year is ₹ 1100 crore. Net Factor Income from abroad is ₹ 100 crore. The value of Net Indirect Tax is ₹150 and National Income is ₹ 850 crore. Calculate the aggregate value of depreciation.

Kapil
Latest Answer: 1 month ago
In: Commerce

Suppose the GDP at market price of a country in a particular year is ₹ 1100 crore. Net Factor Income from abroad is ₹ 100 crore. The value of Net Indirect Tax is ₹150 and National Income is ₹ 850 crore. Calculate the aggregate value of depreciation.

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1 Answers

Answered By Nikita Chetry
Answer: 1 month ago

To find Depreciation, we use the formula: NNP at FC=GDP at MP+Net Factor Income from Abroad−Depreciation−Net Indirect Taxes\text{NNP at FC} = \text{G...

To find Depreciation, we use the formula:

$\text{NNP at FC} = \text{GDP at MP} + \text{Net Factor Income from Abroad} - \text{Depreciation} - \text{Net Indirect Taxes}$

Substitute the given values:

$850 = 1100 + 100 - \text{Depreciation} - 150$ $850 = 1200 - 150 - \text{Depreciation}$ $850 = 1050 - \text{Depreciation}$

So,

$\text{Depreciation} = 1050 - 850 = ₹200 \text{ crore}$

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