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Question

Calculate Depreciation:
ParticularsRs. in crores
(i) NDP at MP
(ii) Indirect taxes
(iii) GNP at FC
(iv) Factor income to abroad
(v)Factor income from abroad
(vi) Subsidies
80,000
10,600
75,920
700
500
1,770

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Solution

Formula: Depreciation = GNP at FC - NDP at MP - Factor income from abroad + Factor income to abroad + Indirect taxes - Subsidies
= 75920 - 80000 - 500 + 700 + 10600 - 1770
= 4950.

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