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You can report the interest in that manner, and the interest will be reported, but it will not be reported properly and may raise matching issues with the IRS. 

The reason is because the information about the entity from the K-1 is also reported on page 2 of Schedule E. If you simply report the interest as such (as if from a 1099-INT, for example), the name of the trust, EIN, etc. will not appear on Schedule E.