Claytonhill Beverages Ltd. is 100-percent owned by Buzz Bottling. While the company has in the past been profitable, it incurred a loss for the year ended December 31, 2020. The parent company, Buzz Bottling, has indicated that if Claytonhill incurs another loss, it will put the subsidiary up for sale. In response, Claytonhill is looking to expand its market share and therefore its profitability by performing private labelling for a nationwide supermarket chain, ValueFoods Inc. Private labelling involves producing and packaging pop and other non-alcoholic beverages under the ValueFoods label. However, in order to proceed with this endeavour, Claytonhill needs a packaging facility dedicated exclusively to co-packing. To finance this expansion, the company has applied to the Better Business Bank for financing.

The bank has indicated that, before it will approve the loan application, it would like to see audited financial statements for 2020. It also wants to ensure the entity has a current ratio of 2:1.

Claytonhill Beverages has provided you, its new auditor, with the draft (unaudited) financial statements in figure 4.10:

Unaudited financial statements for Claytonhill Beverages

Income Statement for the Year Ended December 31, 2020 (partial)
Revenue
Sales	$2,057,505
Cost of goods sold	1,445,450
Gross margin	612,055
Less:
General and administration costs (including bonuses of $100,000)	775,899
Net loss before tax	$(163,844)
Balance Sheet as at December 31, 2020
Assets
Current assets
Cash	$179,825
Accounts receivable, net	64,475
Prepaid expenses	3,004
Inventory	1,507,413
Total current assets	1,754,717
Property, plant and equipment
Land	2,004,933
Building, net	964,224
Office furniture and equipment, net	85,106
Total property, plant and equipment	3,054,263
Total assets	$4,808,980
Liabilities
Current liabilities
Accounts payable	$799,255
Other accrued expenses	44,875
Warranty provision	9,456
Current portion long-term debt	25,000
Total current liabilities	878,586
Long-term liabilities
Bank loans	2,200,000
Total long-term liabilities	2,200,000
Total liabilities	3,078,586
Equity
Common shares	248,000
Retained earnings	1,482,394
Total equity	1,730,394
Liabilities and equity	$4,808,980

Required

Calculate the three levels of materiality.

Planning Materiality		$
Performance Materiality		$
Specific Materiality		$