Pepper Enterprises owns $95$ percent of Salt Corporation. On January $1,20$X$1,$ Salt issued $$260,000$ of five$-$year bonds at $115.$ Annual interest of $12$ percent is paid semiannually on January $1$ and July $1.$ Pepper purchased $$160,000$ of the bonds on August $31,20$X$3,$ at par value. The following balances are taken from the separate $203$ financial statements of the two companies:

Note: Assume using straight$-$line amortization of bond discount or premium.

$\backslash$table$[[,\backslash$table$[[$Pepper$],[$Enterprises$]],\backslash$table$[[$Salt$],[$Corporation$]]],[$Investment in Salt Corporation Bonds,$$165,700,],[$Interest Income,$7,300,],[$Interest Receivable,$9,600,],[$Bonds Payable,,$$260,000$