On Jan 1, 2019, Pegasus Co. issued 15-year convertible bonds at 104. During 2020, the entirety of the bonds were converted into common shares with a total value equating to the entire face amount of the bonds. At the point of conversion, the market price of Pegasus Co's common shares was 55% above its avg. carrying amount. Pegasus Co follows IFRS. At the point of issuance of the bonds, cash proceeds related to the issuance should be reported as: O a. a liability for the present value of the bonds and contributed surplus for the balance. Ob. contributed surplus for the entire proceeds. O c. a liability for the entire proceeds. O d. contributed surplus for the portion of the proceeds attributable to the conversion feature and as a liability for the balance