Ethics Case 9-11 Overstatement of ending inventory Damville Bonders is a wholesale beverage company, Danileve the inventory method to determine the cost sending inventory Ending inventory quantities are determined by a physical For the accounting Sear and December 31.-12. ending inventory was originally de m ed to be 0.265 However, on January 17. 2022. John Howard, the company's controller, discovered an emr in the ending inventory count. He determined that the correct ending inventory amount should be 52. 0LXO. Danville is a privately owned corporation with cant financing provided by a local bank. The bank requires annual audied financial statements as a condition at the laun. By January 17, the auditors had completed their review of the financial statements which are scheduled to be issued on January 25. They didney discover the inventory error John's first reaction was to communicate his finding to the auditors and revise the financial statements before they are issued. However, he knew that his and his fellow wollen proti shunt plans we based on annual petux earnings, and he is uncertain what effect the error correction would have on p at cup Required: 1. What is the effect of the inventory errur oa preta camings 2. How would correcting the error affect employee bonuses 3. If the error is not corrected in the current year and is discovered by the auditions during the following years modit, how will it be reported in the company's mancial statement 4. Discuss the ethical dilemma John Howard faces