The instructor's CD contains a file labeled "AJE" (adjusting journal entries). It contains all of the audit adjustments and reclassifications that you devel- oped in prior modules of this practice case. At this time, your instructor will supply you with a printout of this file. Review the adjustments, which will be presented to the client as proposed audit adjustments. Derick has set the following materiality thresholds: Income statement $ 435,000 Balance sheet $1,542,270 Given these thresholds and referring to the proposed audit adjustments and reclassifications, determine whether the potential adjustments equal or exceed the income statement or balance sheet materiality threshold in the aggregate. Treat income overstatements and income understatements sepa- rately. Do not net understatements against overstatements. That is, if aggregate overstatements are $600,000 and aggregate understatements are $500,000, the adjustments should be proposed to Biltrite management, inasmuch as both exceed the income statement materiality threshold