Sorrel County issued $$25$ million of $5$ percent demand bonds for construction of a county maintenance building. Before year$-$end the county entered into a two$-$year noncancellable take$-$out agreement with a local bank with a $10-$year payback period. The county estimates that $20$ percent of the bonds would be demanded $($called$)$ by the buyers if interest rates increased by at least One percentage point. At year$-$end, rates on comparable debt were $7$ percent. How should these demand bonds be reported in the county's government$-$wide financial statements at year$-$end?

Group of answer choices

$$25$ million in the long$-$term liabilities section of the governmental activities column.

$$5$ million in the current liabilities section of the governmental activities column AND $$20$ million in the long$-$term liabilities section of the governmental activities column.

$$5$ million in the governmental activities column AND $$20$ million would be reported in the schedule of changes in long$-$term obligations.

$$25$ million in the current liabilities section of the governmental activities column