A pay forecast includes $426,000 earned work and 5% retainage. What net receipt should be forecast before other deductions?
Correct Answer
C) $404,700
Subtract retainage from earned work.
Why This Is the Correct Answer
Subtract retainage from earned work.
Why the Other Options Are Wrong
Option A: $21,300
$21,300 is below the supported result for retainage forecast; it likely uses the wrong base, period, or account bucket.
Option B: $414,350
$414,350 is above the supported result for retainage forecast; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $426,000
$426,000 is above the supported result for retainage forecast; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Retainage Forecast drawer for Forecasts Monthly: label subtract before counting dollars.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Payment forecasting; retainage; verify the quantity, Florida notice/permit rule, or field-control record before answering.
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