Sea Lion Park, a private not-for-profit zoological society,
received contributions restricted for research totaling $50,000 in
2011. None of the contributions were spent on research in 2011.
In 2012, $35,000 of the contributions were used to support the
research activities of the society. The net effect on the statement
of activities for the year ended December 31, 2012, for Sea Lion
Park would be a

(b) For the year ended December 31, 2011, the contributions
received for research would be reported on the statement
of activities as an increase of $50,000 in temporarily restricted
net assets. Contributions received from outside donors
for use in research are reported as temporarily restricted net assets.
For the year ended December 21, 2012, a reclassification of
net assets would be reported on the statement of activities. A
reclassification of $35,000 would be reported as both a decrease
in temporarily restricted net assets and an increase in unrestricted
net assets. In addition, research expense of $35,000 would be
reported as a decrease in unrestricted net assets on the statement
of activities for the year ended December 31, 2012. Therefore, as
a result of the transactions in 2012, there was a decrease of
$35,000 in temporarily restricted net assets and no effect on unrestricted
net assets (the $35,000 reclassification to unrestricted
net assets is offset by a $35,000 increase in research expense).