Which Statement Best Describes the "Proportional Method

Multiple Choice

Which statement best describes the "proportional method"?

A) Under this method of accounting, for a convertible bond, all of the bond value would be counted as a liability.
B) Under this method of accounting, for a convertible bond, the issuing entity would record a liability for the estimated value of the bond without the conversion feature.
C) Under this method of accounting, for a convertible bond, estimate the fair value of all components and allocate proportionally to them.
D) Under this method of accounting, the common share component is considered the least reliably measured amount.