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	Accountspayable		SF800,000
Accountsreceivable		1,500,000	Notespayable		2,200,000
Inventory		3,000,000	Commonstock		2,700,000
			Retainedearnings		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.