On March 2, 2017, 20-year, 4 percent, general obligation serial bonds were issued by Mossy County at the face amount of $2,500,000. Interest of 4 percent per year is due semiannually on March 1 and September 1. The first principal payment of $125,000 is due on March 1, 2018. The countys fiscal year end is December 31. What amounts are reported as interest expense in the government-wide financial statements and interest expenditure in the debt service fund for 2017?

Interest expense

Interest expenditure

A)

$83,333.33

$50,000.00

B)

$50,000.00

$83,333.33

C)

$83,333.33

$83,333.33

D)

$83,333.33

$100,000.00