A direct contractor is paid $36,000 and must pay two suppliers: $12,500 and $8,750. How much remains before other costs?
Correct Answer
C) $14,750.
Supplier payments total $21,250. The remaining amount is $36,000 - $21,250 = $14,750.
Why This Is the Correct Answer
Supplier payments total $21,250. The remaining amount is $36,000 - $21,250 = $14,750.
Why the Other Options Are Wrong
Option A: $12,250.
$12,250. is below the supported result for payment allocation calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $13,500.
$13,500. is below the supported result for payment allocation calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $21,250.
$21,250. is above the supported result for payment allocation calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Payment Allocation gate for Planning Lien-Risk: paper opens before money moves.
Reference Hint
Study anchor (closed-book): memorize Payment allocation calculation from CSLB Mechanics Lien guidance; California Civil Code / California Civil Code mechanics lien payment controls; know the rule or calculation trigger without relying on exam-room lookup.
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