rojan Corporation USA borrowed 1,000,000 New Zealand dollars (NZ$) at the beginning of the calendar year when the exchange rate was $0.60 = NZ$1. Before repaying this one-year loan, Trojan learns that the NZ dollar has appreciated to $0.70 = NZ$1. It discovers, also, that its New Zealand subsidiary has an exposed net asset position of NZ$ 3,000,000, which will produce a translation gain upon consolidation. What is the amount of the exchange gain or loss that will be reported in consolidated income if the U.S. dollar is the foreign operations functional currency?