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 of Exuberance defeased its $9,000,000 debt in substance as in item 8 except that no advance refunding debt was issued, the state should report

a. expenditures of $9,000,000 and other financing uses of $3,000,000.

b. expenditures of $3,000,000 and other financing uses of $9,000,000.

c. expenditures of $2,000,000 and other financing uses of $10,000,000.

d. expenditures of $12,000,000.

e. other financing uses of $12,000,000.