A subcontractor payment application is $58,000 with 10 percent retainage. What amount is payable before other offsets?
Correct Answer
B) $52,200.
Retainage is $5,800, so the payable amount is $58,000 - $5,800 = $52,200.
Why This Is the Correct Answer
Retainage is $5,800, so the payable amount is $58,000 - $5,800 = $52,200.
Why the Other Options Are Wrong
Option A: $5,800.
$5,800. is below the supported result for subcontractor payment; it likely uses the wrong base, period, or account bucket.
Option C: $58,000.
$58,000. is above the supported result for subcontractor payment; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $63,800.
$63,800. is above the supported result for subcontractor payment; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Retainage and dollars live in different drawers; Checking Paperwork tells which opens.
Reference Hint
Study anchor (closed-book): memorize Subcontractor payment 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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