The document outlines the income method for calculating national income, which involves 3 steps: 1) Compensation of employees including salaries, wages, bonuses, and social security contributions, 2) Operating surplus including corporate profit after tax, dividends, retained earnings, as well as rent, interest, and royalties, 3) Mixed income of self-employed individuals. The income method provides a breakdown of a country's national income into these major components of compensation, operating surplus, and self-employment income.