A Subsidiary Borrowed $150,000 from Its Parent in a Previous

A subsidiary borrowed $150,000 from its parent in a previous year. Interest payments at an annual rate of 3% are due semiannually on March 1 and September 1 of each year. The accounting year ends December 31. Consolidation eliminating entries for the year include a credit to interest expense in the amount of:

A) $4,500
B) $2,250
C) $ 750
D) $1,500