On January $1,20$X$7,$ Clyde County issued $$100$ million of $5\%,20-$year bonds at $102.$ Interest is payable semiannually. The proceeds were restricted for the construction of a new county water purification plant for its Water Enterprise Fund. $$

Assume that at the fiscal year end the capital project had not yet begun; thus the debt proceeds were still unspent. What classifications of net position would be affected by this fact?$$

Group of answer choices

Restricted net position would include the unspent cash as well as the outstanding liability.

Net investment in capital assets would increase by the amount of unspent bond proceeds, and unrestricted net position would decrease by the amount of unspent bond proceeds.

Net investment in capital assets would be reduced because no capital assets have been added to offset the new capital$-$related debt.

Unrestricted net position would reflect an increase due to the cash received from the debt issuance, but net investment in capital assets would decrease by the amount of unspent debt proceeds.