Answer:
The  discount rate should Honest Abe's use if it considers a project that involves the manufacturing of furniture is 12.46%
Explanation:
In this question, w e use the Capital Asset Pricing model method, which is shown below:
Expected return = Risk-free rate of return + Beta × market risk premium
                             = 3.5% + 1.12 × 8%
                             = 3.5% + 8.96%
                             = 12.46%
In this we use the Integral design beta not the Honest Abe beta
 
        
             
        
        
        
The right answer for the question that is being asked and shown above is that: "High liquidity, high rate of return" the advantages of a bank savings account is that of <span>High liquidity, high rate of return</span>
        
                    
             
        
        
        
what is your question ??
I think u have missed some parts here in the question ..
 
        
             
        
        
        
Answer:
The bad debts expense for 2015 would be $ 28,000 
Explanation:
The balance of the allowance for doubtful account should be equal to the amount estimated to be uncollectible based on the ageing analysis
Estimated uncollectible account                                                 $ 31,000
Allowance for doubtful accounts prior to adjustment               <u>$   3,000</u>
Bad debts expense for the year to be recorded                    <u> $ 28,000</u>  
The accounting entry to record this is as follows:
Bad debts expense                                          Debit               $ 28,000
Allowance for uncollectible accounts            Credit                               $ 28,000