Michael Corp. had the following foreign currency transactions during 20X1:

Purchased merchandise from a foreign supplier on January 23 for the U.S. dollar equivalent of $35,000 and paid the invoice on April 12 at the U.S. dollar equivalent of $40,000. On September 15, borrowed the U.S. dollar equivalent of $40,000 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 $50,000.

In Michael's 20X1 income statement, what amount should be included as a net foreign exchange gain or loss?