Incentive for earning management

Harris Corporation pays senior management an annual bonus from bonus pool. The size of the bonus pool is determined as follows;

Reported Net income	Bonus Pool
Less than equal to $10 million	$0
Greater than $10 million, but less than or equal to $20 million	10% of income in excess of $10 million
Greater $20 million	$1 million

1. Assume a senior management expects current earnings to be $21 million and next years earnings to be $18 million. What incentive does management of Harris Corporation have for managing earnings?
2. Assume that senior management expects current earnings to be $17 million and next years earnings to be $24 million. What incentive does management of Harris Corporation have for managing earnings?
3. Assume that senior management expects current earnings to be $9.5 million and next years earnings to be $12 million. What incentive does management of Harris Corporation have for managing earnings?
4. How might the bonus plan be structured to minimize the incentives for earnings management?