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8-22 (Objective 8-7) Assume a company with the following balance sheet accounts: You are concerned only about overstatements of owner's equity. Set performance materiality for

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8-22 (Objective 8-7) Assume a company with the following balance sheet accounts: You are concerned only about overstatements of owner's equity. Set performance materiality for the three relevant accounts such that the preliminary judgment about materiality does not exceed $5,000. Justify your answer. Account Amount Cash $10.000 Fixed assets 60.000 $70,000 Account Amount Long-term loans $30,000 M. Johnson, proprietor 40.000 $70,000

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