Please help

The executive ofcers of Free State Manufacturing have a performance-based compensation plan. The performance criteria of this plan is tied to growth in earnings per share as follows: EPSGrowthRm 3212221132235\" 16% or better 125% 12-15% 100% 9-1 1 % 80% Less than 9% 0% In 20Y6, Lori Oliver, the Controller of Free State, reviews year-end estimates of bad debt expense and warranty expense. Based on those estimates and other data, she calculates the company's EPS growth at 15%. After hearing this, Kurt Edwards, a member of the executive group, suggests that the estimate of bad debt expense could be decreased, increasing the EPS growth to 16.1%, Oliver is not sure if she should do this because she believes the current estimate of bad debt expense is sound. On the other hand, she recognizes that a signicant amount of subjectivity is involved in the determining the estimate, 1. What, if any, is the ethical dilemma for Oliver? 2. Should Oliver's knowledge of the compensation plan be a factor that influences her estimate? Why or why not? 3. How should Oliver respond to Edwards