Matthias Corp. had the following foreign currency transactions during 2017:

• Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $61,500 and paid the invoice on April 20 at the U.S. dollar equivalent of $51,900.

• On September 1, borrowed the U.S. dollar equivalent of $302,000 evidenced by a note that is payable in the lender's local currency in one year. On December 31, the U.S. dollar equivalent of the principal amount was $321,000.

In Matthias's 2017 income statement, what amount should be included as a net foreign exchange gain or loss?

Multiple Choice

• $9,600 gain

• $28,600 loss

• $19,000 gain

• $9,400 loss