Step 1: Understanding the Concept:
To find Rent, we need to use the Income Method identity where Domestic Income ($NDP_{FC}$) is the sum of Compensation of Employees, Operating Surplus, and Mixed Income.
Operating Surplus is the sum of Rent, Interest, and Profit. Step 2: Key Formula or Approach:
1. $NDP_{FC} = GDP_{MP} - \text{Consumption of fixed capital (Depreciation)} - \text{Net Indirect Taxes (NIT)}$
2. $NIT = \text{Indirect Taxes (GST)} - \text{Subsidies}$ (Subsidies = 0 as not given)
3. $\text{Profit} = \text{Profit after tax} + \text{Corporate tax} + \text{Undistributed profits}$ (Undistributed profits = 0 as not given)
4. $NDP_{FC} = \text{Compensation of Employees} + \text{Rent} + \text{Interest} + \text{Profit}$ Step 3: Detailed Explanation:
First, calculate $NDP_{FC}$:
\[ NDP_{FC} = 200 - 5 - 10 = 185 \text{ crore} \]
Next, calculate Total Profit:
\[ \text{Profit} = 20 + 5 = 25 \text{ crore} \]
Now, substitute these into the Income Method formula:
\[ 185 = 45 (\text{COE}) + \text{Rent} + 45 (\text{Interest}) + 25 (\text{Profit}) \]
\[ 185 = 115 + \text{Rent} \]
\[ \text{Rent} = 185 - 115 = 70 \text{ crore} \] Step 4: Final Answer:
The value of Rent is ₹ 70 crore.
