On October $1,2019,$ the City of Mizner issued $$6,000,000$ in $4\%,$ general obligation bonds at $101$ for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $$5,968,750$ was used to construct the addition, which was completed prior to June $30,2020.$ The remaining funds were transferred to the debt service fund. The bonds were dated October $1,2019,$ and paid interest on April $1$ and October $1.$ The first of $20$ annual principal payments of $$300,000$ is due October $1,2020.$ The fiscal year for Mizner is July $1-$ June $30.$

What would be the amount of debt service expenditures reported in the fiscal year ended June $30,2021?$

Multiple Choice

$$240,000$

$$420,000$

$$540,000$

$$ $$534,000$