A contract price is $28,000. Approved additions are $3,750 and approved credits are $1,900. What revised price should be tracked?
Correct Answer
C) $29,850.
Start with $28,000, add $3,750, and subtract $1,900 to get $29,850.
Why This Is the Correct Answer
Start with $28,000, add $3,750, and subtract $1,900 to get $29,850.
Why the Other Options Are Wrong
Option A: $22,350.
$22,350 subtracts the $3,750 approved additions instead of adding it. The correct calculation is 28,000 + 3,750 - 1,900 = 29,850.
Option B: $26,100.
$26,100 leaves out the $3,750 approved additions. The correct calculation is 28,000 + 3,750 - 1,900 = 29,850.
Option D: $33,650.
$33,650 adds the $1,900 approved credits instead of subtracting it. The correct calculation is 28,000 + 3,750 - 1,900 = 29,850.
Reference Hint
Study anchor (closed-book): memorize Contract balance calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
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