The ADU conversion selection sheet carries a $6,300 allowance, but the owner-selected item costs $5,820 with no markup on allowance credits. What allowance credit should be documented?
Correct Answer
B) $480 credit.
The selected product is $480 below the allowance, so the documented adjustment is a $480 credit.
Why This Is the Correct Answer
The selected product is $480 below the allowance, so the documented adjustment is a $480 credit.
Why the Other Options Are Wrong
Option A: $12,120 credit.
$12,120 credit adds 6,300 and 5,820 instead of taking the difference. The correct calculation is 6,300 - 5,820 = 480 credit.
Option C: $5,820 credit.
$5,820 credit reports the $5,820 owner-selected item costs alone instead of subtracting it from the $6,300 allowance. The correct calculation is 6,300 - 5,820 = 480 credit.
Option D: $6,300 credit.
$6,300 credit reports 6,300 alone instead of subtracting 5,820. The correct calculation is 6,300 - 5,820 = 480 credit.
Reference Hint
Study anchor (closed-book): memorize Allowance reconciliation 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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