The deck repair selection sheet carries a $7,800 allowance, but the owner-selected item costs $7,120 with no markup on allowance credits. What allowance credit should be documented?
Correct Answer
B) $680 credit.
The selected product is $680 below the allowance, so the documented adjustment is a $680 credit.
Why This Is the Correct Answer
The selected product is $680 below the allowance, so the documented adjustment is a $680 credit.
Why the Other Options Are Wrong
Option A: $14,920 credit.
$14,920 credit adds 7,800 and 7,120 instead of taking the difference. The correct calculation is 7,800 - 7,120 = 680 credit.
Option C: $7,120 credit.
$7,120 credit reports the $7,120 owner-selected item costs alone instead of subtracting it from the $7,800 allowance. The correct calculation is 7,800 - 7,120 = 680 credit.
Option D: $7,800 credit.
$7,800 credit reports 7,800 alone instead of subtracting 7,120. The correct calculation is 7,800 - 7,120 = 680 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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