Exhibit 1 presents the balance sheet for December 31, 2018 of a Swiss subsidiary, which keeps its books in Swiss francs. However, they should be translated into U.S. dollars, the reporting currency of the MNC.

Exhibit 1:

Assets			Liabilities & Net Worth
Cash		SF2,100,000	Accounts payable		SF800,000
Accounts receivable		1,500,000	Notes payable		2,200,000
Inventory		3,000,000	Common stock		2,700,000
			Retained earnings		900,000
Total		6,600,000	Total		6,600,000

Assume that the Swiss Franc dropped in value from $1.10/SF to $1.00/SF between December 31 and January 1, 2019. All inventory and common stock were acquired from the exchange rate of $0.90/SF. If there is no change in balance sheet accounts between these two days, calculate the gain or loss from translation by temporal rate method.