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Financial Accounting

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Categorization of Interest Revenue

FINACT-ENLIXJ

Fresh Seafood had a \$50,000 investment in a 10% bond it purchased at par on January 1, 2015 which was categorized as held-to-maturity investment. The maturity date of the bond is January 1, 2025.

Fresh Seafood received \$5,000 as interest revenue for 2015. Did Fresh Seafood recognize this \$5,000 on the income statement as operating expenses, operating income, or other revenues?