On July 1, 2020, Mifflin Company borrowed 400,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2021. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows:

Date	Amount
July 1, 2020 (date borrowed)	$	325,000
December 31, 2020 (Mifflins year-end)		318,600
July 1, 2021 (date repaid)		307,800

In its 2021 income statement, what amount should Mifflin include as a foreign exchange gain or loss on the note?

Multiple Choice

• $17,200 loss

• $17,200 gain

• $10,800 gain

• $10,800 loss