Your answer is incorrect. On January 2, 2020, Perseus 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 Perseus's common shares was 50% above its average carrying value. Perseus adheres to IFRS. At issuance, the cash proceeds from the issuance of these bonds should be reported as O contributed surplus for the portion of the proceeds attributable to the conversion feature and as a liability for the balance. O contributed surplus for the entire proceeds. a liability for the entire proceeds. O a liability for the present value of the bonds and contributed surplus for the balance.