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 1,2008,Moss purchased $100,000 par value 12 percent first mortgage bonds of Hunter from Cruse for $115,000.Hunter originally issued the bonds to Cruse on January 1,2006,for $110,000.The bonds have a 8-year maturity from the date of issue.Moss' reported net income of $65,000 for 2008,and Hunter reported income (excluding income from ownership of Moss's stock) of $90,000.
-Based on the information given above,what amount of interest income does Moss record for 2008?

A) $12,000
B) $2,500
C) $7,500
D) $9,500