A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of$700,000. Of this amount, unrestricted net assets total $400,000, temporarily restricted net assets total $200,000, andpermanently restricted net assets total $100,000. Within the temporarily restricted net assets, the entity must use 80percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment whenpurchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchaseof advertising for fund-raising purposes and the rest is unrestricted. During the current year, the organization has the following transactions:0 Received unrestricted cash gifts of $210,000.0 Paid salaries of $80,000 with $20,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is foradministrative personnel and the remainder is evenly divided among individuals working on research to cure thedesignated disease and individuals employed for fund-raising purposes.- Bought equipment for $300,000 with a long-term note signed for $250,000 and restricted funds used for the remainder. Of this equipment, 80 percent is used in research, 10 percent is used in administration, and the remainder is used for fund-raising.- Collected membership dues of $30,000. The members receive a reasonable amount of value in exchange for these duesincluding a monthly newsletter describing research activities.- Computed depreciation on the equipment acquired as 520,000.- Spent $93,000 on research supplies that it utilized during the year.- Owed salaries of $5,000 at the end of the year. Half of this amount is for individuals doing fund-raising and half forindividuals doing research.0 Received a donated painting that quafifies as a museum piece. It has a value of 5800000. Officials do not want to recordthis gift if possible. a. Prepare a statement of activities for this not-for-profit entity for this year. b. Prepare a statement of financial position for this not-for-profit entity for this year.