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\frac{120+3}{10}-\frac{7\times 10+7}{10}
Multiply 12 and 10 to get 120.
\frac{123}{10}-\frac{7\times 10+7}{10}
Add 120 and 3 to get 123.
\frac{123}{10}-\frac{70+7}{10}
Multiply 7 and 10 to get 70.
\frac{123}{10}-\frac{77}{10}
Add 70 and 7 to get 77.
\frac{123-77}{10}
Since \frac{123}{10} and \frac{77}{10} have the same denominator, subtract them by subtracting their numerators.
\frac{46}{10}
Subtract 77 from 123 to get 46.
\frac{23}{5}
Reduce the fraction \frac{46}{10} to lowest terms by extracting and canceling out 2.