On January 2, 2006, Boles Co. issued 10-year bonds with detachable warrants at 105. During 2007, the warrants were converted into common stock selling for $50. At conversion, the market price of Boles' warrants was $10. On January 2, 2006, cash proceeds from the issuance of the bonds with detachable warrants should be reported as: Select one: . contributed surplus for the entire proceeds. b. C. d. a liability for the entire proceeds. a liability for the face amount of the bonds and contributed surplus for the premium over the face amount. a liability for the present value of cash interest and face value of the bonds discounted at the effective rate, and contributed surplus for the portion of the proceeds attributable to the warrants for the balance. a gain earned from the sale of bonds. e