South City School District has a separately elected governing body that administers the public school system. The district’s budget is subject to the approval of the city council.

Major debts of the school district are expected to be paid by school taxes. The district’s financial activity should be reported in the City’s financial statements by

a. Blending only.

b. Discrete presentation.

c. Inclusion as a footnote only.

d. Either blending or inclusion as a footnote.