Under NIRSA, you're right.
B encroaches, A captain has the penalty option for 5 yards (down remains the same either way as it is a dead ball penalty). If B encroaches before the next snap (i.e., don't enforce this 10 minutes later), then A's captain has the option to accept or decline a 10 yard penalty.
As a note, A can take the 10 yard penalty even if they declined the 5 yard penalty. I doubt you'll see this often. If you do, either (a) A just got the ball at their 14-yard line (the purpose of the 10-yard penalty) or (b) your LJ should be a bit more lenient on an inexperienced defensive line.
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