What is the relationship between GDP, National Income and Capital consumption allowance?

CFA Level I Economics
#1

I used to believe that: GDP = GROSS NATIONAL INCOME = NATIONAL INCOME(NNI) + Capital consumption allowance + statistical discrepancy. However, I run into this practice problem today:

GDP: 18
Wage, salary and other labour income: 9
Taxes: 3.5
Capital consumption allowance: 2.3
Undistributed corporate profits: 1
Transfer payment: 1.9

What is Personal income?

The answer is Personal income = National Income - Taxes - Undistributed corporate profits + Transfer payments
and National Income = GDP + Capital consumption allowance

So Personal income = 18+2.3-3.5-1+1.9=17.7

Why is National income = GDP + Capital consumption allowance? Shouldn’t it be National income = GDP - Capital consumption allowance?

Thank you!!

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#2

Anyone? Keeps me awake, too.

#3

GDP is estimated in the income approach as:

GDP = National Income + Capital Consumption Allowance + Statistical Discrepancy

So you are correct that National Income = GDP - Capital Consumption Allowance

Personal Income = National Income - Indirect Business Taxes - Corporate Income Taxes - Undistributed Corporate Profits + Transfer Payments

It looks like in the answer they perhaps mixed up the sign for Capital Consumption Allowance.

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