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: $480 increase.
$480 increase. is not aligned with the supported result for allowance reconciliation; it has the wrong label or classification even if the number looks close.
Option C: $5,820 credit.
$5,820 credit. is above the supported result for allowance reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $12,120 total.
$12,120 total. is above the supported result for allowance reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Product and dollars live in different drawers; Reconciling Billing tells which opens.
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.
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