Leader Inc. has the following foreign financing: The company borrowed US$370,000, for five years, when US$1.00 = Cdn$1.02. The exchange rate at the end of the first year is US$1.00 = Cdn$1.05, and at the end of the second year is US$1.00 = Cdn$0.99. Assume the debt was raised at par. Ignore interest.

Required: How much exchange gain or loss would be shown in earnings in the second year? (Do not round intermediate calculations.)