A Government Paid $6,000,000 into an Irrevocable Trust to Be

A government paid $6,000,000 into an irrevocable trust to be used to service $5,000,000 of outstanding general obligation bonds, but the transaction does not meet the defeasance in-substance criteria. The payment included $3,000,000 of proceeds from a new bond issue that was issued to provide resources for the old bond. The other $3,000,000 had been accumulated over previous years from taxes and interest earnings in the Debt Service Fund. The government should report this transaction in its Debt Service Fund as

A) Other financing uses of $6,000,000.
B) Expenditures of $6,000,000.
C) Other financing uses of $3,000,000 and expenditures of $3,000,000.
D) No expenditures or other financing uses should be reported.