A private not-for-profit university charges its students tuition of $1.28 million. However, financial aid grants total $100,000. In addition, the school receives a $88,000 grant restricted for faculty salaries. Of this amount, $18,000 is spent 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 isnottrue?

• Unrestricted net assets should show an increase of $18,000 for net assets reclassified.
• Unrestricted net assets shows the $100,000 as a direct reduction to the tuition revenue balance.
• In the unrestricted net assets, the revenues and support should total $1.28 million.
• Unrestricted net assets should recognize expenses of $18,000.