A General Fund Makes Payments to the Debt Service Fund

Multiple Choice

A general fund makes payments to the debt service fund, as follows:
•$4,000,000, as legally authorized in the budget, for payment of principal due on general obligation debt
•$2,000,000, as legally authorized in the budget, for payment of interest due on general obligation debt
•$500,000 temporary transfer, to be paid back when the debt service fund receives funding from other sources
The above transactions reduce the general fund's fund balance-unassigned by what amount?

A) $ 500,000
B) $6,000,000
C) $6,500,000
D) $2,500,000