The National Income Accounts t a Capital Depreciation, International Transfers, and Indirect Business Taxes Adjustments to the definition of gnP >>Depreciation of capital a It reduces the income of capital owners It must be subtracted from GNP (to get the net national product) Net unilateral transfers of income a They are part of a country's income but are not part of its product a They must be added to the net national product Indirect business taxes They are sales taxes a They must be subtracted from gnP9 ◼ Capital Depreciation, International Transfers, and Indirect Business Taxes – Adjustments to the definition of GNP: »Depreciation of capital ◼ It reduces the income of capital owners. ◼ It must be subtracted from GNP (to get the net national product). »Net unilateral transfers of income ◼ They are part of a country’s income but are not part of its product. ◼ They must be added to the net national product. »Indirect business taxes ◼ They are sales taxes. ◼ They must be subtracted from GNP. The National Income Accounts