A Governmental Fund Issues 3% Bonds for $15,000,000 and Uses

A governmental fund issues 3% bonds for $15,000,000 and uses this money to refund 5% bonds currently carried at $14,900,000. How is this reported by the governmental fund?

A) Debit expenditures $15,000,000 and credit other financing sources $15,000,000.
B) Debit bonds payable $14,900,000, debit deferred outflows $100,000 and credit bonds payable $15,000,000.
C) Debit other financing uses $14,900,000; debit expenditures $100,000; and credit other financing sources $15,000,000.
D) Debit cash $15,000,000 and credit bonds payable $15,000,000.