Question

The Data of Macroeconomics-Work It Out Question 1 Tina is the sole owner of Tina's Lawn Mowing, Incorporated (TLM). In one year, TLM collects $2910000 from customers to mow their lawns. TLM's equipment depreciates in value by $363750. TLM pays $1746000 to its workers, who pay $401580 in taxes on this income. TLM pays $145500 in corporate income taxes and pays Tina a dividend of $436500. Tina pays taxes of $174600 on this dividend income. TLM retains $218250 of earnings in the business to finance future expansion. How much does this ecoomic activity contribute to each of the following? Round your answers to two places after the decimal where necessary d. Compensation of Employees-$ e. Proprietor's Income -$ f. Corporate Profits$

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Answer 1

A. GDP = $ 2,910,000

Revenue generated from service so GDP.

B. NNP = GDP - Depreciation = $ 2,910,000 - 363,750 = $ 2,546,250

C. National Income = NNP (Since, no statistical discrepancy)

National Income = $ 2,546,250

D. Compensation to employees = $ 1,746,000

E. Proprietors income = $ 0

F. Corporate profit = retained earning = $ 218,250

G. Personal income = Dividend received = $ 436,500

H. Disposable personal income = Personal income - Tax

Disposable personal income = $ 436,500 - $ 174,600 = $ 261,900

Since all values are given straight forward so we can get the values directly. Please contact through comment before rating up will be obliged to you for your generous support. Thank you!!!