GNP_MP of an economy is 1,50,000 crore and its capital stock is worth 2,00,000 crore. If the rate of depreciation is @ 20% per annum, indirect tax amounts to 30,000 crore and subsidies are 15,000 crore. What will be the amount of national income?

95,000

The correct answer is option 3: 95,000

National income = NNP_FC

NNP_FC= GNP_MP - depreciation - NIT ( indirect tax - subsidies )

NNP_FC = 1,50,000 - 40,000 - ( 30,000 - 15,000 )

NNP_FC= 1,50,000 - 40,000 - 15,000

NNP_FC = 95,000

(Depreciation = 20% of 2,00,000 = 40,000)