On November 30, 2004, Justin Barlow, an alumnus of Murry School, a private, not-for-profit high school, contributed $15,000, with the stipulation that the donation be used for faculty travel expenses during 2005. During 2005, Murry spent all of the donation in accordance with Mr. Barlow’s wishes. For the year ended December 31, 2005, what was the effect of the donation on unrestricted and temporarily restricted net assets?

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Unrestricted net assets

Temporarily restricted net assets

a.

Increase

Decrease

b.

No effect

Decrease

c.

Increase

No effect

d.

No effect

No effect