For a number of years, a private not$-$for$-$profit entity has been preparing financial statements that do not necessarily conform to U$.$S$.$ generally accepted accounting principles. At the end of the most recent year $($Year $2),$ those financial statements show total assets of $$900,000,$ total liabilities of $$100,000,$ net assets without donor restriction of $$400,000,$ and net assets with donor restrictions of $$400,000.$ This last category is composed of $$300,000$ in net assets with purpose restrictions and $$100,000$ in net assets that must be permanently held. At the end of Year $1,$ financial statements show total assets of $$700,000,$ total liabilities of $$60,000,$ net assets without donor restriction of $$340,000,$ and net assets with donor restrictions of $$300,000.$ This last category is composed of $$220,000$ in net assets with purpose restrictions and $$80,000$ in net assets that must be permanently held. Total expenses for Year $2$ were $$500,000$ and reported under net assets without donor restrictions. Each part that follows should be viewed as an independent situation.