In the window replacement file, a contract price is $41,500. Approved additions are $5,200 and approved credits are $3,150. What revised price should be tracked?
Correct Answer
C) $43,550.
Start with $41,500, add $5,200, and subtract $3,150 to get $43,550.
Why This Is the Correct Answer
Start with $41,500, add $5,200, and subtract $3,150 to get $43,550.
Why the Other Options Are Wrong
Option A: $42,450.
$42,450. is below the supported result for contract balance calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $43,250.
$43,250. is below the supported result for contract balance calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $49,850.
$49,850. is above the supported result for contract balance calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Start before dollars; dollars before balance in Updating Accounting.
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.
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