Kashickey College, an institution considered to be governmental in nature, had the following events occur during the year:

• Tuition scholarships of $45,000 were granted during the year and $7,500 of tuition waivers were granted.
• An alumnus donated land valued at $750,000 for the new administration building that is planned for next year.
• Student aid from unrestricted resources was paid to qualifying students in the amount of $300,750.

How will the tuition scholarships and waivers be reported on the college's operating statement?

a. Expenses of $7,500 will be reported for the waivers and $45,000 will be reported as a revenue deduction for the scholarship allowances.

b. Expenses of $52,500 will be reported.

c. Revenue deductions of $52,500 will be reported.

d. The scholarships and waivers are simply disclosed in the notes.

e. None of the above accurately describe the operating statement effect of these transactions.