On March 2, 2017, 20-year, 8 percent, general obligation serial bonds were issued by Mossy County at the face amount of $2,200,000. Interest of 8 percent per year is due semiannually on March 1 and September 1. The first principal payment of $110,000 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.

$146,666.67

$88,000.00

B.

$88,000.00

$146,666.67

C.

$146,666.67

$146,666.67

D. $146,666.67

$176,000.00