McCarthy, Inc.'s Brazilian subsidiary borrowed 123,000 euros on January 1, 2017. Exchange rates between the Brazilian real (BRL) and euro () and between the U.S. dollar ($) and BRL are as follows:

	BRL per	US$ per BRL
January 1, 2017	BRL 4.20	$ 0.28
Average, 2017	BRL 4.30	$ 0.25
December 31, 2017	BRL 4.60	$ 0.20

What amount of foreign exchange gain or loss should be reflected in McCarthy's 2017 consolidated net income?

Multiple Choice

• $2,460 gain.

• $6,150 gain.

• $9,840 loss.

• $12,300 loss.