give me a reply to this statement: Why will bonuses be negatively affected? What is the effect on pretax earnings? The bonuses will be negatively affected because the correction of the inventory error will result in a decrease in reported pretax earnings. Initially, the ending inventory was overstated at $3,265,000, which means the cost of goods sold (COGS) was understated. When John Howard corrected the error to reflect the actual ending inventory of $2,600,000, it increased the COGS. Since pretax earnings are calculated as revenues minus expenses, a higher COGS leads to lower reported earnings. This reduction in earnings directly impacts the profit-sharing bonus, which is typically tied to the company's financial performance. Because of this, the bonuses will be lower due to the decrease in pretax earnings resulting from the correction of the inventory error