On April 1, 2010, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by signing an interest-bearing note due April 1, 2011. The dollar value of the loan was as follows: How much foreign exchange gain or loss should be included in Shannon's 2011 income statement?

$1,000 gain. $1,000 loss. $2,000 gain. $2,000 loss. $8,000 loss.

Date Amount April 1. 2010 December 31, 2010 April 1. 2011 97,000 S 103,000 S 105,000