Easterly City Has $47 Million of Debt Recorded in Its

Easterly City has $47 million of debt recorded in its schedule of changes in long-term obligations, made up of $30 million of general obligation debt, $1 million of compensated absences payable, $4 million of claims and judgments, and $12 million of obligations under capital leases.The state limits the amount of general obligation debt that can be issued by a city to 20 percent of the assessed value of its taxable property.The assessed value of property in Easterly City is $250 million.The city's legal debt margin is

A) $ 3 million.
B) $ 20 million.
C) $ 30 million.
D) $50 million.

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