Suppose that you are the auditor of a major retail client who has reported the following income before taxes (IBT) for the first two quarters of the year 1st quarter= $1,200,000 and 2nd quarter = $1,500,000. you are in the process of wstablishing overall materiality for the clint. Based on prior years the clint has a 10% decline in IBT from the 2nd quarter to the 3rd quarter. you also know that IBT in the 4th quarter increases by 25% over the third quarter. Determine the amount of overall materiality for the audit based on these preliminary amounts.