A donor gave $$25,000$ at the beginning of $2024$ to a private not$-$for$-$profit organization to use for scholarships. In $2024,$ scholarships of $$35,000$ were awarded. How would scholarship expense be reported in the Statement of Activity for $2024?$

Multiple Choice

$$35,000$ under net assets with donor restrictions.

$$35,000$ under net assets without donor restrictions.

$$10,000$ under net assets without donor restrictions and $$25,000$ under net assets with donor restrictions.

$$10,000$ under net assets without donor restrictions.