1. JJ is a retailer, public for profit company, with net income before taxes of $2,000,000 and total assets of $5,000,000. During the year, Wayne CPA firm discovered multiple misstatements that aggregated to an overstatement of net income of $110,000. Calculate Overall Materiality using 5% of the appropriate base and calculate Tolerable Misstatement by using 50% of the appropriate base. Should JJ CPA firm request an overall adjustment and if so, by how much?
2. 1. Request an adjustment of $5,000
   2. Request an adjustment of $10,000
   3. Request an adjustment of $15,000
   4. The CPA firm should not request an adjustment because the misstatements were below the materiality level
   5. None of the above

I just dont want the answer , I want an explanation to the answer, the answer i KNow is B but why ?