Which of the following statements is not correct for financial statements of nongovernmental not-for-profit organizations?

1. Nongovernmental not-for-profit organizations issue a statement of activities
2. Depreciation expenses are not recognized by nongovernmental not-for-profit organizations
3. Contributed assets are recognized by a not-for-profit entity as public support contribution revenue
4. Pledged contributions are usually recognized in the accounting period in which pledged by donors
5. A nongovernmental not-for-profit organizations Statement of Financial Position includes a section specifically for net assets