Total proceeds from issuance of bonds with warrants is allocated between the liability component and equity component using the residual method. Which of the following is correct? the fair value of the liability component is determined by residual amount after deducting the fair value of equity component from the total issuance price. the amount allocated to equity is reported as part of share premium. both statements b and c are correct. the initial value of the equity component is equivalent to its fair value after deducting the fair value of liability component from total issuance price