Sun Corporation Owns 60 Percent of Moon Company's Voting Shares

Sun Corporation owns 60 percent of Moon Company's voting shares. On January 1, 20X4, Moon sold bonds with a par value of $400,000 when the market rate was 6 percent. Sun purchased one-third of the bonds; the remainder was sold to nonaffiliates. The bonds mature in 15 years and pay an annual interest rate of 5 percent. Interest is paid semiannually on June 30 and December 31.
-Based on the information given above,what amount of interest income will Sun Corporation recognize on December 31,20X5 relative to the interest received on that day,in its separate financial statements?

A) $3,625
B) $3,633
C) $7,224
D) $7,258