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Generally, a company earns a servicing fee when it retains the servicing of a block of loans in which it has sold all or part of the block. Service fees received from sales of participations are recorded as:
A. Netted against interest income remitted to the acquiring party
B. Gross income
C. Unearned revenue and not netted against interest income remitted to the acquiring party
D. Gross income and not netted against interest income remitted to the acquiring party
Answer: D

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