$23.$ Easterly City has $$47$ million of debt recorded in its schedule of changes in long$-$term obligations, made up of $$30$ million of general obligation debt, $$1$ million of compensated absences payable, $$4$ million of claims and judgments, and $$12$ million of obligations under capital leases. The state limits the amount of general obligation debt that can be issued by a city to $20$ percent of the assessed value of its taxable property. The assessed value of property in Easterly City is $$250$ million. The city$$s legal debt margin is

a$)$ $ $3$ million.

b$)$ $ $20$ million.

c$)$ $ $30$ million.

d$)$ $$50$ million.

$24$ A state created a housing authority to provide financing for low$-$income housing. The authority issues bonds and uses the proceeds for that purpose. Currently the authority has outstanding $$200$ million in bonds backed by the state$$s promise to cover debt service shortages should they arise. The state constitution specifically limits the state to no more than $$2$ million in general obligation debt. How can the state officials defend the $$200$ million in debt outstanding?

a$)$ The debt is not general obligation debt.

b$)$ The state is only morally obligated for the debt.

c$)$ The debt is the debt of the authority, not the state.

d$)$ All of the above.

$25$ Debt that is issued by one entity but backed by the promise of another entity to make up any debt service deficiency is

a$)$ Committed debt.

b$)$ Overlapping debt.

c$)$ Conduit debt.

d$)$ Moral obligation debt.