A Government issued $10,000,000 of general government, general obligation, 5%, 30 year bonds at 3% premium on July 1, 20X7 to finance the

construction of a new building. Interest is payable semiannually on each Jan 1 and Jul 1. Principal in the amount of $200,000 matures on each Jul 1. If the

Governments fiscal year ends June 30,20X8, what amount of debt service expenditures should be reported for 20X8 fiscal year?

$0

$450,000

$250,000

$200,000