Banker County Has Outstanding $4 Million of Term Bonds That

Multiple Choice

Banker County has outstanding $4 million of term bonds that bear interest at 6 percent payable semiannually each January 30 and July 30.The county's fiscal year-end is 12/31.On December 28, 2015, the County transferred $240,000 to a debt service fund.At December 31, the maximum amount the debt service fund may recognize as interest expenditure is

A) $120,000
B) $240,000.
C) $100,000.
D) $0.