Retention amount on the Acme Construction bill equals 10% of 1,200,000. How much is withheld as retention?

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Multiple Choice

Retention amount on the Acme Construction bill equals 10% of 1,200,000. How much is withheld as retention?

Explanation:
This question tests applying a percent to a total to determine how much is withheld from a construction payment. Retention is the portion kept back to ensure performance, usually stated as a percentage of the billed amount. Here, 10% of 1,200,000 is calculated by multiplying 1,200,000 × 0.10, which equals 120,000. So, 120,000 is withheld as retention. The other amounts correspond to different percentages or to no retention at all, but only 10% of 1,200,000 yields 120,000.

This question tests applying a percent to a total to determine how much is withheld from a construction payment. Retention is the portion kept back to ensure performance, usually stated as a percentage of the billed amount. Here, 10% of 1,200,000 is calculated by multiplying 1,200,000 × 0.10, which equals 120,000. So, 120,000 is withheld as retention. The other amounts correspond to different percentages or to no retention at all, but only 10% of 1,200,000 yields 120,000.

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