A City's Internal Service Fund Provides Services Only to General

A city's Internal Service Fund provides services only to general government departments. During the year, the Internal Service Fund reports operating revenue of $100,000, operating expenses of $80,000 and interest income of $10,000. What adjustments are needed to the governmental funds operating statement information to reflect these transactions in the statement of activities in the government-wide statement?

A) Increase revenue by $110,000 and decrease expenses by $80,000.
B) Increase revenue by $10,000 and decrease expenses by $20,000.
C) Decrease expenses by $80,000 and increase revenue by $10,000.
D) Decrease expenses by $30,000 and decrease revenue by $20,000.