Brandt Corp. (a U.S.-based company) sold parts to a South Korean customer on December 1, 2020, with payment of 10 million South Korean won to be received on March 31, 2021. The following exchange rates apply:

Date	Spot Rate	Forward Rate (to March 31, 2021)
December 1, 2020	$0.0035	$0.0034
December 31, 2020	0.0033	0.0032
March 31, 2021	0.0038	N/A

11. Assuming that Brandt did not hedge its foreign exchange risk, how much foreign exchange gain or loss should it report on its 2020 income statement with regard to this transaction?
    1. $5,000 gain
    2. $3,000 gain
    3. $2,000 loss
    4. $1,000 loss