Assume for Questions 5 through 9 that the state of Exuberance issued $10,000,000 of 5%, 20-year refunding bonds in 20X5 at par.

If the state placed the $10,000,000 in an irrevocable trust as in item 6 but the transaction did not meet the defeasance in substance criteria, the state should report

a. expenditures of $9,000,000 and other financing uses of $1,000,000.

b. expenditures of $10,000,000.
¢. expenditures of $1,000,000 and other financing uses of $9,000,000.

d. other financing uses of $10,000,000.
€. no expenditures or other financing uses.