A government retired $5,000,000 of outstanding general obligation bonds when due. The

government used $3,000,000 of proceeds from new bonds issued to provide resources for

retiring the old bonds. The other $2,000,000 had been accumulated from tax and interest

revenues over the years that the old bonds were outstanding. The government should report

this transaction in its Debt Service Fund as

A. Other financing uses of $5,000,000.

B. Other financing uses of $3,000,000 and expenditures of $2,000,000.

C. Expenditures of $5,000,000.

D. Other financing uses of $2,000,000 and expenditures of $3,000,000.