B is corrent because the ratio estimation technique estimates the audited value by multiplying the ratio of the audited value over the book value of the sample by the population book value. In this case, ($300,000/$250,000) x $5,000,000 = $6,000,000.
A is incorrect because the ratio method uses the ratio of audited dollars to book dollars in the sample to project to the population.
C is incorrect because the ratio method uses the ratio of audited dollars to book dollars in the sample to project to the population.
D is incorrect because the ratio method uses the ratio of audited dollars to book dollars in the sample to project to the population.
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