A progress billing is $86,000 with 5 percent retainage. How much retainage is withheld?
Correct Answer
B) $4,300.
Retainage is $86,000 x 5 percent = $4,300.
Why This Is the Correct Answer
Retainage is $86,000 x 5 percent = $4,300.
Why the Other Options Are Wrong
Option A: $86,000.
$86,000. is above the supported result for retainage; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $4,800.
$4,800. is above the supported result for retainage; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $1,800.
$1,800. is below the supported result for retainage; it likely uses the wrong base, period, or account bucket.
Memory Technique
Checking Progress-Billing money test: bucket before math for retainage.
Reference Hint
Study anchor (closed-book): memorize Retainage from CSLB Law and Business Study Guide; California tax and payroll guidance / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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