Assume that Nathan County sold $3,179,500 of bonds during the fiscal year at a discount of $25,000. In addition, the county incurred $22,500 of bond issue costs that were withheld from the proceeds the county received. When these events are applied to the conversion worksheet, what will be the net adjustment on the change in fund balance/ net assets.

a. Net increase of $3,179,500.

b. Net increase of $3,132,000.

c. Net decrease of $3,132,000.

d. Net decrease of $3,179,500.