Task #3 RRI's financial statements are provided to: . The preferred shareholders who receive annual dividend payments: Dividends are paid when net income exceeds $100,000 and are calculated as: 50% x (net income - $100,000). The maximum salary for Sam and his wife, Lucky (who is RRI's office administrator), that can be expensed in the calculation of net income is $80,000 each. The bank, with whom RRI has an operating line of credit: RRI has never drawn down the maximum on the line of credit, and RRI has a strong credit history with the bank. RRI's 2020 draft financial statements reported the following balances: Total customer revenues $ 450,000 Government grant revenue 25,000 Payment of environmental penalty2 5,000 Salary of Sam and Lucky3 200,000 Net income before tax 135,000 Total assets 1,200,000 Note 1: Non-renewable government grant to subsidize hiring of a student. Note 2: Payment for disposal of waste that was found to contain asbestos. RRI attempts to avoid this, but on some sites asbestos cannot be properly segregated, and unexpected penalties occur. Note 3: Regular salary of $160,000 plus discretionary bonus of $40,000. Perform a preliminary assessment of materiality for the 2020 audit. Your response should be no longer than one page, excluding any Excel files