Turbo Corporation (a U.S. -based company) acquired merchandise on account from a foreign supplier on November 1, 2017, for 100,000 markkas. It paid the foreign currency account payable on January 17, 2018. The following exchange rates for 1 markka are known:

November 1, 2017	$ 0.754
December 31, 2017	0.742
January 15, 2018	0.747

1. How does the fluctuation in exchange rates affect Turbos 2017 income statement?
2. How does the fluctuation in exchange rates affect Turbos 2018 income statement?

1. The ____ in the dollar value of the markka payable is recorded as ___ foreign exchange ____ in 2017.
2. The ____ in the dollar value of the markka payable is recorded as ___ foreign exchange ____ in 2018.