The city of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bonds at 103 on April 1, 20X7, to finance a major general government capital project. Interest is payable semiannually on each October 1 and April 1 during the term of the bonds. In addition, $250,000 of principal matures each April 1.

If Lora’s fiscal year-end is December 31, what amount of debt service expenditures should
be reported for this DSF for the 20X7 fiscal year?
a. $0.
b. $200,000.
c. $300,000.
d. $400,000.