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Question : If the national income is INR 12,000 crore, compensation of employees is INR 6,000 crore, wages and salaries in cash is INR 2,500 crore, royalty is INR 600 crore, corporate tax is INR 1,200 crore, and dividend is INR 300 crore, what is the profit in this case?

 

Option 1: INR 1,400 crore

Option 2: INR 2,800 crore

Option 3: INR 3,000 crore

Option 4: INR 3,500 crore


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: INR 1,400 crore


Solution : The correct answer is  (A) INR 1,400 crore

To calculate the profit in this case, we need to subtract the compensation of employees, wages and salaries in cash, royalty, corporate tax, and dividend from the national income. Let's perform the calculation:

Profit = National income - Compensation of employees - Wages and salaries in cash - Royalty - Corporate tax - Dividend

National income = INR 12,000 crore

Compensation of employees = INR 6,000 crore

Wages and salaries in cash = INR 2,500 crore

Royalty = INR 600 crore

Corporate tax = INR 1,200 crore

Dividend = INR 300 crore

Substituting the values into the formula:

Profit = INR 12,000 crore - INR 6,000 crore - INR 2,500 crore - INR 600 crore - INR 1,200 crore - INR 300 crore

Profit = INR 1,400 crore

Therefore, the profit in this case is INR 1,400 crore.

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