During Year 1, the organization received a gift of $80,000. The donor specified that this money be invested in government bonds with the interest to be used to pay the salaries of the organization’s employees. The gift was recorded as an increase in permanently restricted net assets. It earned interest income of $5,000 during Year 1 and $7,000 during Year 2. The organization reported this interest on the statement of activities as an increase in unrestricted net assets. In both cases, the money was immediately expended for salaries, amounts that were recorded as expenses within un-restricted net assets. No other entries were made in connection with these funds.
(a)What was the correct amount of unrestricted net assets at the end of Year 2?
(b) What was the correct amount of expenses in unrestricted net assets for Year 2?
(c) What was the correct amount of temporarily restricted net assets at the end of Year 2?