For a number of years, a private not-for-profit entity has been preparing financlal statements that do not necessarlly 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 labilities 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, financlal 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.

Assume that this entity is a private college that charged its students $560,000 for tultion in Year 2 but then provided $140,000 In financial ald. The $600,000 was reported as revenue. The $140,000 was reported as an expense. Both of these amounts were included in the net assets without donor restrictions.

Required:

a. What is the appropriate amount that should be reported as net assets without donor restrictions at the end of Year 2?

Net assets without donor restrictions to be reported:

b. What is the appropriate amount that should be reported as expenses for Year 2?

Expenses to be reported: