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Use the following information for Problems 20 and 21

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McCarthy, Inc.'s Brazilian subsidiary borrowed 121,000 euros on January 1, 2020. 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, 2020	BRL 4.20	$ 0.28
Average, 2020	BRL 4.30	$ 0.25
December 31, 2020	BRL 4.60	$ 0.20

Part a

At what amount should the Brazilian subsidiary's euro note payable be reported on McCarthy's December 31, 2020, consolidated balance sheet?

part b

What amount of foreign exchange gain or loss should be reflected in McCarthy's 2020 consolidated net income?