Luke County issued $20,000,000 par of capital improvement bonds for a general government project. The bonds were issued at a discount of 2% of par. The bond indenture requires that $500,000 of the proceeds be set aside for future debt service. These transactions should be reflected in the county’s Capital Projects Fund as

a. other financing sources—bond proceeds, $20,000,000.

b. other financing sources—bond proceeds, $19,600,000.

c. other financing sources bond proceeds, $20,000,000; other financing uses—bond discount, $400,000; other financing uses—transfers out, $500,000.

d. other financing sources—bond proceeds, $19,600,000; debt service expenditures—
$500,000.

e. None of the above.