A private not-for-profit university charges its students tuition of $1.14 million. However, financial aid grants total $160,000. In addition, the school receives a $94,000 grant restricted for faculty salaries. Of this amount, it spent $24,000 appropriately this year. On the statement of activities, the school reports three categories: (1) revenues and support, (2) net assets reclassified, and (3) expenses. Which of the following is not true?

In the unrestricted net assets, the revenues and support should total $1.14 million.

Unrestricted net assets shows the $160,000 as a direct reduction to the tuition revenue balance.

Unrestricted net assets should recognize expenses of $24,000.

Unrestricted net assets should show an increase of $24,000 for net assets reclassified.