Question

One day, Barry the Barber, Inc., collects $450 for haircuts. Over this day, his equipment depreciates in value by $30. Of the remaining $420, Barry sends $40 to the government in sales taxes, takes home $270 in wages, and retains $110 in his business to add new equipment in the future. From the $270 that Barry takes home, he pays $80 in income taxes.Based on this information, complete the following table by computing Barry's contribution to the measures of income listed. "Barry's Contribution (Dollars)", "Measure of Income "Gross Domestic Product_____, Net National Product______, National Income______, Personal Income__________, Disposable Personal Income_________.

Answer 1

Explanation:

Data given in the question

Collection made for haircuts = $450

Equipment Depreciates value = $30

Sales taxes = $40

Wages = $270

New equipment = $110

Home collection = $270

Income taxes = $80

So by considering the above information, the calculation is as follows

Gross domestic product is $450

Net national product is

= Gross domestic product - depreciation

= $450 - $30

= $420

National income is the same as net national product so it is also $420

Personal income is

= National income - new equipment - sales taxes

= $420 - $110 - $40

= $270

And, the disposal personal income is

= Personal income - income tax

= $270 - $80

= $190