A Government Issued General Obligation Bonds to Finance the Construction

A government issued general obligation bonds to finance the construction of a new fire station. In the current year, the government incurred $107,000 of interest expense on the debt. This amount will be reported on the government-wide statement of activities as

A) Expenses of the general government function.
B) Expenses of the public safety function.
C) Interest expenses of the governmental activities.
D) An offset to interest earnings in the General Fund.