The City of Newport Issued $1,500,000 of General Obligation Refunding

The City of Newport issued $1,500,000 of general obligation refunding bonds at a 2% premium. Bond issuance costs of $15,000 were incurred. The proceeds, net of the premium and bond issue costs, are used in the same period to defease the outstanding bonds. Debt Service Fund Expenditures will be debited for

A) $15,000.
B) $30,000.
C) $1,455,000.
D) $1,470,000.