Business FinancesQuestion 1148 of 1605
An owner withholds 10% retention on a $40,000 progress billing. How much does the contractor receive on that billing?
a.$40,000
b.$36,000
c.$30,000
d.$4,000
Explanation
Retention withheld = $40,000 x 10% = $4,000. Amount paid now = $40,000 - $4,000 = $36,000. The $4,000 is held back and released later, typically after completion.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)