Sarasota Ltd$.$ issued $$4015000,5-$year, $8\%$ convertible bonds at par. Bonds pay interest annually. Each $$1000$ bond is convertible to

$220$ of Sarasota's no par value common shares, which are currently trading at $$25$ each. The current market rate for similar non$-$

convertible bonds is $10\%.$ Assuming Sarasota adheres to IFRS, the value to be recorded for the conversion option is

$$5000.$

$$110000.$

$$304400.$

$$0.$