Income Approach to Calculate GDP Another way is to look at the composition of value added(or income). The following is the composition of gDP in terms of income > Wage Rents Interest rate Proprietor's income Corporate Profit tax dividends retained profit Some statistic Adjustment Indirect Tax(Sales tax) Depreciation Net foreign factor income earned in U. S Remark: Similarly, the wage, profit, etc. include the income of domestic people or company earned in other country. This is the reason why we use net foreign income3 Income Approach to Calculate GDP Another way is to look at the composition of value added (or income). The following is the composition of GDP in terms of income ➢ Wage ➢ Rents ➢ Interest Rate ➢ Proprietor's income ➢ Corporate Profit ➢ tax ➢ dividends ➢ retained profit ➢ Some Statistic Adjustment ➢ Indirect Tax (Sales tax) ➢ Depreciation ➢ Net foreign factor income earned in U. S. Remark: Similarly, the wage, profit, etc. include the income of domestic people or company earned in other country. This is the reason why we use net foreign income