Stevens Corporation issued 5% convertible bonds with a total face value of $3,000,000 for

$3,000,000. If the bonds had not had a conversion feature, they would have sold for $2,600,000.

Under IFRS, the entry to record the transaction would require a credit to:

(a) Bonds Payable for $3,000,000.

(b) Bonds Payable for $400,000.

(c) Equity Conversion Rights for $400,000.

(d) Discount on Bonds Payable for $400,000.