A wholly-owned subsidiary obtained a $500,000 loan from its parent on April 1, 2019, at a 3% annual rate of interest. Interest is payable annually on March 31 of each year. The accounting year ends December 31. It is now December 31, 2021, and the loan is still outstanding.

Eliminating entries (I) at December 31, 2021 include a credit to interest receivable of

Select one:

A. $ 3,750

B. $11,250

C. $15,000

D. $ 7,500