For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily follow generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $1,000,000, total liabilities of $120,000, total unrestricted net assets of $440,000, total temporarily restricted net assets of $320,000, and total permanently restricted net assets of $120,000. In addition, total expenses for the year were $540,000 (shown in unrestricted net assets).

Assume that this entity is a private college that charged students $620,000 but then provided $160,000 in financial aid. The $620,000 was reported as a revenue; the $160,000 was shown as an expense. Both amounts were included in the unrestricted net assets.

1. What was the correct amount of unrestricted net assets at the end of the year?

2. What was the correct amount of expenses for the year?