Use the Following Information for Questions 36-37

question 61

Multiple Choice

Use the following information for questions 36-37.
On January 2, 2020, Perseus Corp. issued 10-year convertible bonds at 105. During 2021, all the bonds were converted into common shares having a total value equal to the total face amount of the bonds. At conversion, the market price of Perseus's common shares was 50% above its average carrying value. Perseus adheres to IFRS.
-At issuance, the cash proceeds from the issuance of these bonds should be reported as

• A) contributed surplus for the entire proceeds.
• B) contributed surplus for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.
• C) a liability for the present value of the bonds and contributed surplus for the balance.
• D) a liability for the entire proceeds.

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