Question

Calculate the value of ‘Rent’ from the following data:

Hint:

GDPFC = GDPMP − Net Indirect Taxes

Answer 1

Concept: National Income by Income Method
\[ \text{GDP}_{FC} = \text{Compensation of Employees} + \text{Rent} + \text{Interest} + \text{Profit} \] Also: \[ \text{GDP}_{MP} = \text{GDP}_{FC} + \text{Net Indirect Taxes} \]
Step 1:Calculate Net Indirect Taxes
\[ \text{GST} = 10 \] \[ \text{GDP}_{FC} = 200 - 10 = 190 \]
Step 2:Calculate Profit before tax
\[ \text{Profit before tax} = \text{Profit after tax} + \text{Corporate tax} \] \[ = 20 + 5 = 25 \]
Step 3:Apply income method
\[ 190 = 45 + \text{Rent} + 45 + 25 \] \[ 190 = 115 + \text{Rent} \] \[ \text{Rent} = 190 - 115 = 75 \] Final Answer: \[ \text{Rent} = 75\ \text{crore} \]