A governmental fund issues 3% bonds for $15,000,000 and uses this money to refund 5% bonds currently carried at $14,900,000. If both transactions are recorded in the same fund, how is this reported by the governmental fund?

Select one:

a. Debit bonds payable $14,900,000, debit deferred outflows $100,000 and credit bonds payable $15,000,000.

b. Debit expenditures $15,000,000 and credit other financing sources $15,000,000.

c. Debit other financing uses $14,900,000; debit expenditures $100,000; and credit other financing sources $15,000,000.

d. Debit cash $15,000,000 and credit bonds payable $15,000,000.