On January 2, 2020, Perce Corp. issued 10-year convertible bonds at 105. During 2021, all the bonds were converted into common shares having a total value equal to the total face amount of the bonds. At conversion, the market price of Perce's common shares was 50% above its average carrying value. Perce adheres to IFRS. At issuance, the cash proceeds from the issuance of these bonds should be reported as

a) contributed surplus for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.

b) a liability for the present value of the bonds and contributed surplus for the balance.

c) a liability for the entire proceeds.

d) contributed surplus for the entire proceeds.