6.Assume the following relating to monetary unit sampling:

Sample planning

Population book value = $6,200,000

Sampling interval = $77,500

Results

Projected Misstatement = $110,000.

Basic Precision = $290,000.

Upper Limit on Misstatement = $410,000.

Tolerable Misstatement = $380,000.

The incremental allowance for sampling risk is equal to:

(a) $810,000

(b) .$30,000

(c) $77,500.

(d) $10,000.