The governing board of a hospital operated by a religious organization designated $3,000,000 of cash to be used for plant expansion. The cash was invested in stocks and bonds which earned $250,000 of dividend and interest income. The income from investments should be reported on the hospital's statement of operations as an increase in:
A. operating income.
B. either net assets with donor restrictions or net assets without donor restrictions, depending upon the nature of the governing board's restrictions.
C. fund balance in the general fund.
D. net assets with donor restrictions.
Answer: A
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