Step 1: Understanding the IQ formula. The formula for calculating IQ is:
\[
\text{IQ} = \left( \frac{\text{Mental Age}}{\text{Chronological Age}} \right) \times 100
\]
Step 2: Calculating the IQ. Using the given values,
\[
\text{IQ} = \left( \frac{12}{10} \right) \times 100 = 1.2 \times 100 = 120
\]
Step 3: Final Answer. Thus, the IQ of the child is 120.