The City of Pocahontas issued $20 million in bonds at par. The City loaned the proceeds to Domsee Fish Processors to expand the size of its facility, which would allow Domsee to hire additional workers. The loan payments from Domsee to the City are established to match the principal and interest payments on the bond issue. The bonds are payable exclusively from the loan repayments by Domsee. The bonds are secured by the additional plant facilities built by Domsee. Where should the City report the bonds in its annual financial report?

Group of answer choices

In the government-wide financial statements.

In the notes to the financial statements.

In the proprietary fund financial statements.

In any of the above ways.