Using the same $180,000 contract and 10 percent retention, if gross earned is $90,000, what net billing is allowed before prior payments?
Correct Answer
A) $81,000.
Ten percent retention on $90,000 is $9,000, so net billing is $81,000.
Why This Is the Correct Answer
Ten percent retention on $90,000 is $9,000, so net billing is $81,000.
Why the Other Options Are Wrong
Option B: $9,000.
$9,000. is below the supported result for progress billing; it likely uses the wrong base, period, or account bucket.
Option C: $90,000.
$90,000. is above the supported result for progress billing; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $99,000.
$99,000. is above the supported result for progress billing; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Progress Billing drawer for Applying Retention: label percent before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Progress billing from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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