Harrell's Barrels Issued $100 Million of 6% Convertible Bonds at 101

Harrell's Barrels issued $100 million of 6% convertible bonds at 101. Each $1,000 bond is convertible into 45 shares of Harrell's no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 98.
-Harrell applies International Financial Reporting Standards. Recording the issuance of the bonds would cause an increase in Harrell's:

A) shareholders' equity of $1,000,000.
B) shareholders' equity of $3,000,000.
C) assets of $98,000,000.
D) liabilities of $101,000,000.