The financial statements of XYZ Company report a net income of $1,500,000 for the year ended December 31, 2022. During the year, the company paid dividends of $250,000 to its shareholders. The auditors of the company found that the cost of goods sold was understated by $100,000, and the company has to adjust this error in its financial statements. Calculate the effect of the error on the net income of the company for the year ended December 31, 2022, and determine the new amount of dividends that the company should pay to its shareholders.

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