Based on past experience with a client, an auditor determined performance materiality for current assets should be calculated at 1/4 of total materiality (6% of total current assets) and noncurrent assets should be calculated at 1/3 of total materiality (3% of total noncurrent assets). Calculate performance materiality for current assets based on the following: Cash and cash equivalents $800,000 Land 300,000 Accounts receivable 125,000 Prepaids 175,000 Building 200,000 Fixtures and equipment 600,000 Inventory 100,000 Leasehold improvements 150,000 $18,000 $9,000 $9,375 $18,750