On March 1, 2018, Doll Co

On March 1, 2018, Doll Co. issued 10-year convertible bonds at 106. During 2021, the bonds were converted into common stock when the market price of Doll's common stock was 500 percent above its par value. Doll prepares its financial statements according to International Financial Reporting Standards (IFRS) . On March 1, 2018, cash proceeds from the issuance of the convertible bonds should be reported as:

A) A liability for the entire proceeds.
B) Paid-in capital for the entire proceeds.
C) Paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.
D) A liability for the face amount of the bonds and paid-in capital for the premium over the par value.