On January 1, 2020, Entity A issues convertible bonds with a maturity of five years. The issue is for a total of 1,000 convertible bonds. Each bond has a par value of P1,000, a stated interest rate is 5% per year, and is convertible into 5 ordinary shares of Entity A. The convertible bonds were issued to Entity O at par. The per-share price for an Entity A share is P15. Quotes for similar bonds issued by Entity A without a conversion option (i.e., bonds with similar principal and interest cash flows) suggest that they can be sold for P900,000.

The carrying amount of bonds payable on Entity As books as of December 31, 2020 is

a P917,320 b P1,000,000 c P938,085 d P882,680