False start timing rule loophole

[jchamp]

In NCAA, when a dead-ball foul such as false start is committed by A while the game clock is running, does the game clock continue to run on the RFP after administering the penalty?
Situation: 4th quarter 3:00 remaining, A leads by 6 points, 1st & 10 at B's 40. B has no timeouts. The ready is given and A allows the clock to wind to 2:25 before snapping.
Case 1) the snap and kneel down is made, and the play clock sets to 40 seconds starting at about 2:22, subsequent snaps are: 2nd down, 1:45, 3rd down at 1:05, and 4th down at 0:25. Obviously, A cannot close the game and must give B an opportunity to have the ball.
--OR--
Case 2) just before the first down snap, A72 commits a false start. At 2:25, the penalty is administered and the 25-second clock is started at 2:25. The subsequent snaps occur at: 1st down, 2:00, 2nd down 1:20, 3rd down 0:40, 4th down 0:00. In this case, a deliberate penalty can allow A to gain a timing advantage, and it's easy to see it as inadvertent.

Do I have the right penalty administration? Is this a legitimate application of the timing rules by the officials, assuming the current NCAA rules? Are there any coaches sly enough to try to pull this off? Am I missing something?