Proctor and Jones School is a private not$-$for$-$profit entity. On its current statement of activities, $$55,000$ is reported as "net assets released from restrictions." What is the impact of that designation?

Multiple choice question.

Unrestricted net assets decrease by $$55,000$ and restricted net assets increase by $$55,000.$

Unrestricted net assets increase by $$55,000$ and restricted net assets decrease by $$55,000.$

Only restricted net assets are affected and they decrease by $$55,000.$

Only unrestricted net assets are affected and they increase by $$55,000.$