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 being used to refund 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.