E22-2

1. When a temporary restriction on resources of a nongovernmental not-for-profit entitiy is met by the incurrence of an expense for the restricted purpose:

a. The expense is reported in the statememtn of activities as an increase in unrestricted net assets.

b. Amounts reported in the temporarily restricted net assets are reclassified as unrestricted net assets.

c. The entry is a debit to expense and a credit to the program services

d. The expense is reported in restricted net asset