Use the Following Information for Questions 36-37

question 57

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.
-On conversion, Perseus would credit the Common Shares account with

• A) the par value of the bonds plus the balance in the Contributed Surplus account.
• B) the carrying value of the bonds plus the balance in the Contributed Surplus account.
• C) the carrying value of the bonds minus the balance in the Contributed Surplus account.
• D) the market value of the bonds plus the balance in the Contributed Surplus account.

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Definitions:

Fair Market Value

The price at which a willing buyer and willing seller would transact, with neither being under any compulsion to buy or sell.

Net Book Value

The value of an asset after subtracting accumulated depreciation or amortization from its original cost.

TSX

The Toronto Stock Exchange, a major stock exchange in Canada where shares of public companies are traded.

Outstanding Shares

The total number of shares of a corporation that are currently owned by investors, including restricted shares owned by the company's officers and insiders.