On December 31, Year 1, Precision Manufacturing Inc. (PMI) of Edmonton purchased 100% of the outstanding ordinary shares of Sandora Corp. of Flint, Michigan.

Sandoras comparative statement of financial position and Year 2 income statement are as follows:

STATEMENT OF FINANCIAL POSITION
At December 31
	Year 2			Year 1
Plant and equipment (net)	US$	6,720,000		US$	7,420,000
Inventory		5,820,000			6,420,000
Accounts receivable		6,220,000			4,820,000
Cash		900,000			1,020,000
	US$	19,660,000		US$	19,680,000
Ordinary shares	US$	5,120,000		US$	5,120,000
Retained earnings		7,600,000			7,120,000
Bonds payabledue Dec. 31, Year 6		4,920,000			4,920,000
Current liabilities		2,020,000			2,520,000
	US$	19,660,000		US$	19,680,000

INCOME STATEMENT
For the year ended December 31, Year 2
Sales	US$	42,000,000
Cost of purchases		32,760,000
Change in inventory		600,000
Depreciation expense		700,000
Other expenses		5,360,000
		39,420,000
Profit	US$	2,580,000

Additional Information

• Exchange rates

Dec. 31, Year 1	US$1	=	C$1.10
Sep. 30, Year 2	US$1	=	C$1.07
Dec. 31, Year 2	US$1	=	C$1.05
Average for Year 2	US$1	=	C$1.08

• Sandora declared and paid dividends on September 30, Year 2.
• The inventories on hand on December 31, Year 2, were purchased when the exchange rate was US$1 = C$1.06.

Required:

(a) Assume that Sandora's functional currency is the Canadian dollar:

(i) Calculate the Year 2 exchange gain (loss) that would result from the translation of Sandora's financial statements. (Input all amounts as positive value. Omit currency symbol in your response.)

(Click to select) Exchange gain Exchange loss C$