A customer paid $12,600 to an unlicensed contractor for work requiring a license. What compensation-paid amount is used in a §7031 disgorgement practice problem?
Correct Answer
B) $12,600.
The compensation-paid figure is the $12,600 paid to the unlicensed contractor.
Why This Is the Correct Answer
The compensation-paid figure is the $12,600 paid to the unlicensed contractor.
Why the Other Options Are Wrong
Option A: $6,300.
$6,300. is below the supported result for unlicensed compensation bar; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $18,900.
$18,900. is above the supported result for unlicensed compensation bar; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Option D: $11,600.
$11,600. is below the supported result for unlicensed compensation bar; it likely omits allowance, conversion, coverage, or final round-up.
Memory Technique
Measure to compensation-paid, adjust for figure, then let Practicing Disgorgement set the finish line.
Reference Hint
Study anchor (closed-book): memorize Unlicensed compensation bar from CSLB licensing guidance; CSLB 2026 Law Book; California Business and. / Business and Professions Code Section 7031; know the rule or calculation trigger without relying on exam-room lookup.
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