Potter Corporation Owns 60 Percent of Snape Company's Voting Shares

Potter Corporation owns 60 percent of Snape Company's voting shares.On January 1,20X4,Snape sold bonds with a par value of $400,000 when the market rate was 6 percent.Potter 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 Potter 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