Business FinancesQuestion 331 of 690
A contractor's progress payment application bills $80,000 of completed work. The owner withholds 10% retention. How much cash will the contractor actually receive on this payment?
a.$80,000
b.$8,000
c.$72,000
d.$88,000
Explanation
Retention withheld = 10% × $80,000 = $8,000. Cash received = $80,000 − $8,000 = $72,000. The $8,000 is collected later when retention is released.
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