Salmon County Issued $25 Million of 5% Demand Bonds for Construction

Salmon County issued $25 million of 5% demand bonds for construction of a county maintenance building.Before year-end the County entered into a two-year noncancellable take-out agreement with a local bank with a 10-year payback period.The County estimates that 20% of the bonds would be demanded called by the buyers if interest rates increased at least 1%.At year-end rates on comparable debt were 7%.How should these demand bonds be reported in the County's government-wide financial statements at year-end?

A) $25 million in the Long-term Liability section of the governmental activities column.
B) $5 million in the Current Liabilities section of the governmental activities column AND $20 million in the Long-term Liabilities section of the governmental activities column.
C) $5 million in the governmental activities column AND $20 million would be reported in the Schedule of Changes in Long-term Debt Obligations.
D) $25 million in the Current Liabilities section of the governmental activities column.