Question
One day, Barry the Barber, Inc., collects $500 for haircuts. Over this day, his equipment depreciates in value by $80. Of the remaining $420, Barry
One day, Barry the Barber, Inc., collects $500 for haircuts. Over this day, his equipment depreciates in value by $80. Of the remaining $420, Barry sends $50 to the government in sales taxes, takes home $250 in wages, and retains $120 in his business to add new equipment in the future. From the $250 that Barry takes home, he pays $90 in income taxes.
Based on this information, complete the following table by computing Barry's contribution to the measures of income listed.
| Measure of Income | Barry's Contribution |
|---|---|
| (Dollars) | |
| Gross Domestic Product | |
| Net National Product | |
| National Income | |
| Personal Income | |
| Disposable Personal Income |
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Financial Accounting
Authors: Libby, Short
6th Edition
978-0073526881
