32 Pages

Exams

Course: ACCY 113, Spring 2011
School: CSU Sacramento
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1: Title: Exam exam1 Started: September29,20104:01PM Submitted: September29,20105:15PM Timespent: 01:13:52 Totalscore: 190/200=95% Totalscoreadjustedby0.0 Maximumpossiblescore:200 1. exam11 Undertherealizationprinciple,revenueshouldnotberecognizeduntiltheearningsprocessisdeemedvirtually completeand: StudentResponse 1. Revenueisrealized. 2. Anyreceivableis collected. 3. Collectionis reasonablycertain. 4....

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1: Title: Exam exam1 Started: September29,20104:01PM Submitted: September29,20105:15PM Timespent: 01:13:52 Totalscore: 190/200=95% Totalscoreadjustedby0.0 Maximumpossiblescore:200 1. exam11 Undertherealizationprinciple,revenueshouldnotberecognizeduntiltheearningsprocessisdeemedvirtually completeand: StudentResponse 1. Revenueisrealized. 2. Anyreceivableis collected. 3. Collectionis reasonablycertain. 4. Collectionis absolutelyassured. 100% Value CorrectAnswer Feedback Score: 10/10 2. exam12 WhichofthefollowingwasnotacriterionforrevenuerecognitioninSAB101? Score: 10/10 3. exam13 Foratypicalmanufacturingcompany,themostcommoncriticalpointforrecognizingrevenueisthedate: Score: 0/10 4. exam14 Bert'sMeatMarketsellsquartersandsidesofbeefontheinstallmentbasis.Lossesonreceivablesarevery difficulttopredict,andmeatproductscannotberepossessed.TherevenuerecognitionmethodusedbyBert wouldbe: Score: 10/10 5. exam15 OnDecember15,2009,RigsbySalesCo.soldatractoflandthatcost$3,600,000for$4,500,000.Rigsby appropriatelyusestheinstallmentsalemethodofaccountingforthistransaction.Termscalledforadown paymentof$500,000withthebalanceintwoequalannualinstallmentspayableonDecember15,2010,and December15,2011.Ignoreinterestcharges.RigsbyhasaDecember31yearend. In2009,Rigsbywouldrecognizerealizedgrossprofitof: Score: 10/10 6. exam16 OnDecember15,2009,RigsbySalesCo.soldatractoflandthatcost$3,600,000for$4,500,000.Rigsby appropriatelyusestheinstallmentsalemethodofaccountingforthistransaction.Termscalledforadown paymentof$500,000withthebalanceintwoequalannualinstallmentspayableonDecember15,2010,and December15,2011.Ignoreinterestcharges.RigsbyhasaDecember31yearend. In2010,Rigsbywouldrecognizerealizedgrossprofitof: Score: 10/10 7. exam17 OnDecember15,2009,RigsbySalesCo.soldatractoflandthatcost$3,600,000for$4,500,000.Rigsby appropriatelyusestheinstallmentsalemethodofaccountingforthistransaction.Termscalledforadown paymentof$500,000withthebalanceintwoequalannualinstallmentspayableonDecember15,2010,and December15,2011.Ignoreinterestcharges.RigsbyhasaDecember31yearend. InitsDecember31,2009,balancesheet,Rigsbywouldreport: Score: 10/10 8. exam18 OnDecember15,2009,RigsbySalesCo.soldatractoflandthatcost$3,600,000for$4,500,000.Rigsby appropriatelyusestheinstallmentsalemethodofaccountingforthistransaction.Termscalledforadown paymentof$500,000withthebalanceintwoequalannualinstallmentspayableonDecember15,2010,and December15,2011.Ignoreinterestcharges.RigsbyhasaDecember31yearend. AtDecember31,2010,Rigsbywouldreportinitsbalancesheet: Score: 10/10 9. exam19 IndianaCo.beganaconstructionprojectin2009thatwillprovideit$150millionwhenitiscompletedin2011. During2009,Indianaincurred$36millionofcostsandestimatesanadditional$84millionofcoststocomplete theproject. Usingthepercentageofcompletionmethod,Indiana: StudentResponse 1. Recognizednogross profitorlossonthe projectin2009. 2. Recognized$6 millionlossonthe projectin2009. 3. Recognized$9gross 100% profitontheprojectin 2009. 4. Recognized$36 millionlossonthe projectin2009. Value CorrectAnswer Feedback Score: 10/10 10. exam110 IndianaCo.beganaconstructionprojectin2009thatwillprovideit$150millionwhenitiscompletedin2011. During2009,Indianaincurred$36millionofcostsandestimatesanadditional$84millionofcoststocomplete theproject. In2010,Indianaincurredcostsof$58.5millionandestimatedanadditional$40.5millionincoststocomplete theproject.Usingthepercentageofcompletionmethod,Indiana: Score: 10/10 11. exam111 IndianaCo.beganaconstructionprojectin2009thatwillprovideit$150millionwhenitiscompletedin2011. During2009,Indianaincurred$36millionofcostsandestimatesanadditional$84millionofcoststocomplete theproject. Supposethat,in2010,Indianaincurredcostsof$63.75millionandestimatedanadditional$42.75millionin coststocompletetheproject.Usingthepercentageofcompletionmethod,Indiana: Score: 10/10 12. exam112 Fromtheperspectiveofthelessee,leasesmaybeclassifiedaseither: Score: 10/10 13. exam113 Fromtheperspectiveofthelessor,leasesmaybeclassifiedaseither: Score: 10/10 14. exam114 Oneofthefourcriteriaforacapitalleasespecifiesthatthepresentvalueoftheminimumleasepaymentsbe equaltoorgreaterthan: Score: 10/10 15. exam115 Whichofthefollowingisnotamongthecriteriaforclassifyingaleaseasacapitallease? Score: 10/10 16. exam116 TechnoidInc.sellscomputersystems.TechnoidleasescomputerstoLoneStarCompanyonJanuary1,2009. Themanufacturingcostofthecomputerswas$12million. Thisnoncancelableleasehadthefollowingterms: Leasepayments:$2,466,754semiannually;firstpaymentatJanuary1,2009;remainingpaymentsatJune30 andDecember31eachyearthroughJune30,2013. Leaseterm:5years(10semiannualpayments) Noresidualvalue;nobargainpurchaseoption Economiclifeofequipment:5years Implicitinterestrateandlessee'sincrementalborrowingrate:5%semiannually FairvalueofthecomputersatJanuary1,2009:$20million Collectibilityoftherentalpaymentsisreasonablyassured,andtherearenolessorcostsyettobeincurred. Technoidwouldaccountforthisas: Score: 10/10 17. exam117 TechnoidInc.sellscomputersystems.TechnoidleasescomputerstoLoneStarCompanyonJanuary1,2009. Themanufacturingcostofthecomputerswas$12million. Thisnoncancelableleasehadthefollowingterms: Leasepayments:$2,466,754semiannually;firstpaymentatJanuary1,2009;remainingpaymentsatJune30 andDecember31eachyearthroughJune30,2013. Leaseterm:5years(10semiannualpayments) Noresidualvalue;nobargainpurchaseoption Economiclifeofequipment:5years Implicitinterestrateandlessee'sincrementalborrowingrate:5%semiannually FairvalueofthecomputersatJanuary1,2009:$20million Collectibilityoftherentalpaymentsisreasonablyassured,andtherearenolessorcostsyettobeincurred. LoneStarCompanywouldaccountforthisas: Score: 10/10 18. exam118 TechnoidInc.sellscomputersystems.TechnoidleasescomputerstoLoneStarCompanyonJanuary1,2009. Themanufacturingcostofthecomputerswas$12million. Thisnoncancelableleasehadthefollowingterms: Leasepayments:$2,466,754semiannually;firstpaymentatJanuary1,2009;remainingpaymentsatJune30 andDecember31eachyearthroughJune30,2013. Leaseterm:5years(10semiannualpayments) Noresidualvalue;nobargainpurchaseoption Economiclifeofequipment:5years Implicitinterestrateandlessee'sincrementalborrowingrate:5%semiannually FairvalueofthecomputersatJanuary1,2009:$20million Collectibilityoftherentalpaymentsisreasonablyassured,andtherearenolessorcostsyettobeincurred. WhatistheinterestrevenuethatTechnoidwouldreportonthisleaseinits2009incomestatement? Score: 10/10 19. exam119 FranciscoleasedequipmentfromJulioonDecember31,2009.Theleaseisa10yearleasewithannual paymentsof$150,000dueonDecember31ofeachyear.Thepresentvalueofthelease(ata10%implicit interestrate)is$1,020,000.Francisco'sincrementalborrowingrateis12%forthistypeoflease.Theimplicit rateof10%isknownbythelessee.WhatshouldbethebalanceinFranciscoleaseliabilityatDecember31, 2010? Score: 10/10 20. exam120 Aguaranteedresidualvalueattheinceptionofacapitalleaseshouldbe Score: 10/10 Exam 2: Title: exam2 Started: November4,20105:51PM Submitted: November4,20106:53PM Timespent: 01:02:49 Totalscore: 200/200=100% Totalscoreadjustedby0.0 Maximumpossiblescore:200 1. exam21 Duringtheyear,cashincreasedby$300million.Investingandfinancingactivitiescreatedpositivecashflow totaling$500million.Whatwerenetcashflowsfromoperatingactivitiesinthestatementofcashflows? StudentResponse 1. Inflowof$300million. 2. Outflowof$200 million. 3. Outflowof$300 million. 4. Inflowof$600million. 100% Value CorrectAnswer Feedback Score: 10/10 2. exam22 Whichofthefollowingisnotaninflowofcash? Score: 10/10 3. exam23 Whichofthefollowingisnotclassifiedasanoperatingactivity? Score: 10/10 4. exam24 Whichofthefollowingwouldnotbeacashinflowfromfinancingactivities? Score: 10/10 5. exam25 Theprimaryobjectiveofthestatementofcashflowsistoprovideinformationaboutacompany's: Score: 10/10 6. exam26 Cashpaidtosuppliersunderthedirectmethodiscomputedas: Score: 10/10 7. exam27 Whenpreparingthestatementofcashflowsusingtheindirectmethodfordeterminingnetcashflowsfrom operatingactivities,depreciationisaddedtonetincomebecause: Score: 10/10 8. exam28 Whichofthefollowingwouldbeaddedtonetincomewhendeterminingcashflowsfromoperatingactivities undertheindirectmethod? Score: 10/10 9. exam29 CrebleCompanyreportednetincomefor2009intheamountof$40,000.Thecompany'sfinancialstatements alsoincludedthefollowing: Increaseinaccountsreceivable$4,000 Decreaseininventory2,000 Gainonsaleofequipment5,000 Depreciationexpense3,000 Inthestatementofcashflowswhatisnetcashprovidedbyoperatingactivitiesundertheindirectmethod? Score: 10/10 10. exam210 Afirmreportedsalaryexpenseof$239,000forthecurrentyear.Thebeginningandendingbalancesinsalaries payablewere$40,000and$15,000,respectively.Whatwastheamountofcashpaidforsalaries? Score: 10/10 11. exam211 LudwigCompany'sprepaidrentwas$9,000atDecember31,2008,and$13,000atDecember31,2009.Ludwig reportedrentexpenseof$19,000onthe2009incomestatement.Whatamountwouldbereportedinthe statementofcashflowsasrentpaidusingthedirectmethod? Score: 10/10 12. exam212 PickeringCompany'sprepaidinsurancewas$8,000atDecember31,2008,and$10,000atDecember31, 2009.Pickeringreportedinsuranceexpenseof$15,000onthe2009incomestatement.Whatamountwouldbe reportedinthestatementofcashflowsasinsurancepaidusingthedirectmethod? Score: 10/10 13. exam213 In2009,BodilyCorporationreported$300,000pretaxaccountingincome.Theincometaxrateforthatyearwas 30%.Bodilyhadanunused$120,000netoperatinglosscarryforwardfrom2007whenthetaxratewas40%. Bodily'sincometaxpayablefor2009wouldbe Score: 10/10 14. exam214 ThefinancialreportingcarryingvalueofBozeMusic'sonlydepreciableassetexceededitstaxbasisby $150,000atDecember31,2009.Thiswasaresultofdifferencesbetweenstraightlinedepreciationforfinancial reportingpurposesandMACRSfortaxpurposes.Theassetwasacquiredearlierintheyear.Bozehasno othertemporarydifferences.Theenactedtaxrateis30%for2009and40%thereafter.Bozeshouldreportthe deferredtaxeffectofthisdifferenceinitsDecember31,2009,balancesheetas: Score: 10/10 15. exam215 ForitsfirstyearofoperationsTringaliCorporation'sreconciliationofpretaxaccountingincometotaxable incomeisasfollows: Pretaxaccountingincome$300,000 PermanentDifference(15,000) TemporaryDifferenceDepreciation(20,000) Taxincome$265,000 Tringali'staxrateis40%.Assumethatnoestimatedtaxeshavebeenpaid. WhatshouldTringalireportasincometaxpayableforitsfirstyearofoperations? Score: 10/10 16. exam216 ForitsfirstyearofoperationsTringaliCorporation'sreconciliationofpretaxaccountingincometotaxable incomeisasfollows: Pretaxaccountingincome$300,000 PermanentDifference(15,000) TemporaryDifferenceDepreciation(20,000) Taxincome$265,000 Tringali'staxrateis40%.Assumethatnoestimatedtaxeshavebeenpaid. WhatshouldTringalireportasitsdeferredincometaxliabilityasoftheendofitsfirstyearofoperations? Score: 10/10 17. exam217 ForitsfirstyearofoperationsTringaliCorporation'sreconciliationofpretaxaccountingincometotaxable incomeisasfollows: Pretaxaccountingincome$300,000 PermanentDifference(15,000) TemporaryDifferenceDepreciation(20,000) Taxincome$265,000 Tringali'staxrateis40%.Assumethatnoestimatedtaxeshavebeenpaid. WhatshouldTringalireportasitsincometaxexpenseforitsfirstyearofoperations? Score: 10/10 18. exam218 ClintonCorp.hadthefollowingpretaxincome(loss)overitsfirstthreeyearsofoperations: 2007$1,200,000 2008(900,000) 20091,500,000 Foreachyeartherewerenodeferredincometaxesandthetaxratewas40%.Forits2008taxreturn,Clinton didnotelectalosscarryback.Novaluationaccountwasdeemednecessaryforthedeferredtaxassetasof December31,2008.WhatwasClinton'sincometaxexpensein2009? Score: 10/10 19. exam219 Undercurrenttaxlawanetoperatinglossmaybecarriedback: Score: 10/10 20. exam220 Undercurrenttaxlawanetoperatinglossmaybecarriedforwardupto: Score: 10/10 Exam 3: 2. Amortizationofpriorservicecost. 3. Anincreaseintheactuary'sassumed discountrate. 4. Areturnonplanassetsthatislower thanexpected. Score: 10/10 4. exam34 Pensiongainsrelatedtoplanassetsoccurwhen: Score: 10/10 5. exam35 Theaccountingfordefinedcontributionpensionplansiseasybecauseeachyear: Score: 10/10 6. exam36 Whichofthefollowingdescribesdefinedbenefitpensionplans? Score: 10/10 7. exam37 Theprocessofassigningthecostofpostretirementbenefitstotheyearsduringwhichthosebenefitsare assumedtobeearnedbyemployeesiscalled: Score: 10/10 8. Exam38 ThefollowinginformationpertainstoHavanaCorporation'sdefinedbenefitpensionplan: ($In000s)20092010 Projectedbenefitobligation(6000)(6504) Planassets5,7606,336 PriorservicecostAOCI600552 NetlossAOCI720786 Attheendof2009,Havanacontributed$696thousandtothepensionfundandbenefitpaymentsof$624 thousandweremadetoretirees.Theexpectedrateofreturnonplanassetswas10%,andtheactuary's discountrateis8%.TherewerenochangesinactuarialestimatesandassumptionsregardingthePBO. Whatisthe2009servicecostforHavana'splan? Score: 10/10 9. Exam39 ThefollowinginformationpertainstoHavanaCorporation'sdefinedbenefitpensionplan: ($In000s)20092010 Projectedbenefitobligation(6000)(6504) Planassets5,7606,336 PriorservicecostAOCI600552 NetlossAOCI720786 Attheendof2009,Havanacontributed$696thousandtothepensionfundandbenefitpaymentsof$624 thousandweremadetoretirees.Theexpectedrateofreturnonplanassetswas10%,andtheactuary's discountrateis8%.TherewerenochangesinactuarialestimatesandassumptionsregardingthePBO. WhatisHavana's2009actualreturnonplanassets? Score: 10/10 10. exam310 ThefollowinginformationpertainstoHavanaCorporation'sdefinedbenefitpensionplan: ($In000s)20092010 Projectedbenefitobligation(6000)(6504) Planassets5,7606,336 PriorservicecostAOCI600552 NetlossAOCI720786 Attheendof2009,Havanacontributed$696thousandtothepensionfundandbenefitpaymentsof$624 thousandweremadetoretirees.Theexpectedrateofreturnonplanassetswas10%,andtheactuary's discountrateis8%.TherewerenochangesinactuarialestimatesandassumptionsregardingthePBO. WhatisHavana's2009gainorlossonplanassets? Score: 10/10 11. exam311 ThefollowinginformationpertainstoHavanaCorporation'sdefinedbenefitpensionplan: ($In000s)20092010 Projectedbenefitobligation(6000)(6504) Planassets5,7606,336 PriorservicecostAOCI600552 NetlossAOCI720786 Attheendof2009,Havanacontributed$696thousandtothepensionfundandbenefitpaymentsof$624 thousandweremadetoretirees.Theexpectedrateofreturnonplanassetswas10%,andtheactuary's discountrateis8%.TherewerenochangesinactuarialestimatesandassumptionsregardingthePBO. Whatisthe2009pensionexpenseforHavana'splan? Score: 10/10 12. exam312 TheEPBOforaparticularemployeeonJanuary1,2009,was$30,000.TheAPBOatthebeginningoftheyear was$6,000.Theappropriatediscountrateforthispostretirementplanis5%.Theemployeeisexpectedto servethecompanyforatotaloftwentyfiveyearswithfiveofthoseyearsalreadyservedasofJanuary1,2009. WhatistheAPBOatDecember31,2009? Score: 10/10 13. exam313 Assumetheactuaryestimatesthenetcostofprovidinghealthcarebenefitstoaparticularemployeeduringhis retirementyearstohaveapresentvalueof$60,000.Ifthebenefitsrelatetoanestimated25yearsofservice andfiveofthoseyearshavebeencompleted, Score: 10/10 14. exam314 ThefollowingdataareforGuavaCompany'sretireehealthcareplanforthecurrentcalendaryear. Numberofemployeescovered5 YearsemployedasofJanuary14(each) Attributionperiod20years EPBO,January1$60,000 EPBO,December31$63,600 Interestrate6% FundingandplanassetsNone Whatistheinterestcosttobeincludedinthecurrentyear'spostretirementbenefitexpense? Score: 10/10 15. exam315 ThefollowingdataareforGuavaCompany'sretireehealthcareplanforthecurrentcalendaryear. Numberofemployeescovered5 YearsemployedasofJanuary14(each) Attributionperiod20years EPBO,January1$60,000 EPBO,December31$63,600 Interestrate6% FundingandplanassetsNone Whatistheservicecosttobeincludedinthecurrentyear'spostretirementbenefitexpense? Score: 10/10 16. Exam316 Whenanaccountingchangeisreportedundertheretrospectiveapproach,prioryears'financialstatementsare: Score: 10/10 17. exam317 Whichofthefollowingaccountingchangesshouldnotbeaccountedforprospectively? Score: 10/10 18. exam318 ZCompanyhasincludedinitsconsolidatedfinancialstatementsthisyearasubsidiaryacquiredseveralyears agothatwasappropriatelyexcludedfromconsolidationlastyear.Thisresultsin Score: 10/10 19. Exam319 GoosenCompanyboughtacopyrightfor$90,000onJanuary1,2006,atwhichtimethecopyrighthadan estimatedusefullifeof15years.OnJanuary5,2009,thecompanydeterminedthatthecopyrightwouldexpire attheendof2014.HowmuchshouldGoosenrecordretrospectivelyastheeffectofchange? Score: 0/10 20. exam320 Acompanyusesthepercentageofsalesmethodtoestimatebaddebtexpense. Itstaxrateis30%.Afterissuingits2009financialstatements,thefirmdiscoveredthatitfailedtowriteoff $50,000inreceivablesthatweredeterminedtobeuncollectiblein2009.Asaresultofthiserror,netincome was: Score: 0/10
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Practice Midterm Exam for ECO 4000MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Analyzing the behavior of unemployment rates across U.S. states in March of 2002 is an example of using A) cross-
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CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEYAnswers to Concepts Review and Critical Thinking Questions 1. 2. The four parts are the present value (PV), the future value (FV), the discount rate ( r), and the life of the investment (t). Com
CUNY Baruch - FIN - 3610
CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIAAnswers to Concepts Review and Critical Thinking Questions 1. A payback period less than the projects life means that the NPV is positive for a zero discount rate, but nothing more definitive can b
CUNY Baruch - FIN - 3610
CHAPTER 4 LONG-TERM FINANCIAL PLANNING AND GROWTHAnswers to Concepts Review and Critical Thinking Questions 1. The reason is that, ultimately, sales are the driving force behind a business. A firms assets, employees, and, in fact, just about every aspect
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CHAPTER 6 DISCOUNTED CASH FLOW VALUATIONAnswers to Concepts Review and Critical Thinking Questions 1. 2. 3. 4. The four pieces are the present value (PV), the periodic cash flow ( C), the discount rate (r), and the number of payments, or the life of the
CUNY Baruch - FIN - 3610
CHAPTER 7 INTEREST RATES AND BOND VALUATIONAnswers to Concepts Review and Critical Thinking Questions 1. 2. 3. No. As interest rates fluctuate, the value of a Treasury security will fluctuate. Long-term Treasury securities have substantial interest rate
CUNY Baruch - FIN - 3610
CHAPTER 10 MAKING CAPITAL INVESTMENT DECISIONSAnswers to Concepts Review and Critical Thinking Questions 1. In this context, an opportunity cost refers to the value of an asset or other input that will be used in a project. The relevant cost is what the
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9/22/10 Paragraph <p> Single line break <br /> Heading <h1>-<h6> Strong emphasis <strong>emphasis <em> Bold <b> I talicize <i> underline <u> anchor (link) <a> unordered list <ul> ordered list <ol> list i tem <li> <img src=_ alt=stuar t /> <i> = <em> <b> =
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Exam 3 ECS 102 Dr. Baruch Fall 2009Name:problem points score 1 13 2 16 3 10 4 10 5 10 6 14 7 17 8 10 Total 10011. Write a function void subString( char early[ ], char later[ ], int startIndex, int endIndex) that copies the piece of early from position
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Exam 3 ECS 102 Dr. Baruch Spring 2009Name:problem points score 1 10 2 8 3 8 4 10 5 10 6 11 7 7 8 9 9 9 10 4 11 14 Total 10011. For each of the following, what will be the output? (a) char mom[] = "Martha"; char dad[] = "George"; mom[1] = dad[0]; print
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Exam 3 ECS 102 Dr. Baruch Spring 2010Name:problem points score 1 12 2 16 3 12 4 12 5 12 6 14 7 14 8 8 Total 10011. Write a function printSomeStrings( char list[ ][80], int sizeOfList, int startindex, int stopindex); that will print the strings in the
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MAT 397 - Calculus III Spring 2011 All sections Course Description: MAT 397 is the third course in a three semester sequence in Calculus. This sequence is designed for Mathematics, Science and Engineering majors and for those students in other majors who
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0.0.1Hand-in Assignment 1 Solutions (Math 20300 DD, PP, ST) Your Name: Foster, Antony Your Student ID: 0000 (only last 4 digits) Your Instructor: Prof. A. Foster Due Date: Friday, February 8, 2008.SECTION 13.1 (pages 829834): DO Exercises 1, 3, 4, 5, 1