On January 1, 2003, Martinez Corp. issued $2,000,000 of 10% bonds which may be converted into total 10,000 shares of $5 par value ordinary shares. The market interest rate of is 12%. Interest is payable annually on December 31, and the bonds were issued at par. The maturity date is December 31, 2007. Which of the following statements is correct regarding the effect of the journal entry made on January 1, 2003, under IFRS?

A) Total Asset is increased.

B) Total Liability is increased.

C) Total Equity is increased.

D) All of the above are correct.