A City Government Levies Property Taxes That Are Recorded Directly

A city government levies property taxes that are recorded directly into a Debt Service Fund,rather than the General Fund.How should those property taxes be reported in the government-wide statement of activities?

A) as property tax revenue in the general revenues section
B) as a direct reduction of interest expenses in the functional expense section
C) as an element of program revenue,which reduce gross interest expenses
D) as a negative expense,which is then allocated to all functions or programs