Hunter Corporation Holds 80 Percent of the Voting Shares of Moss

Hunter Corporation holds 80 percent of the voting shares of Moss Company. On January 1, 20X8, Moss purchased $100,000 par value 12 percent Hunter bonds from Cruse Corporation for $115,000. Hunter originally issued the bonds to Cruse on January 1, 20X6, for $110,000. The bonds have an 8-year maturity from the date of issue and pay interest semiannually on June 30 and December 31 each year. Moss' reported net income of $65,000 for 20X8, and Hunter reported income (excluding income from ownership of Moss's stock) of $90,000. Hunter's partial bond amortization schedule is as follows:

-Based on the information given above,what amount of interest income does Moss record on its individual books for 20X8?

A) $10,950
B) $8,002
C) $9,410
D) $10,002