Matthias Corp. had the following foreign currency transactions during 2020: Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $63,200 and paid the invoice...

Matthias Corp. had the following foreign currency transactions during 2020:

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  Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $63,200 and paid the invoice on April 20 at the U.S. dollar equivalent of $51,400.

  
  


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  On September 1, borrowed the U.S. dollar equivalent of $304,000 evidenced by a note that is payable in the lender's local currency in one year. On December 31, the U.S. dollar equivalent of the principal amount was $326,000.

  
  

In Matthias’s 2020 income statement, what amount should be included as a net foreign exchange gain or loss?

Multiple Choice

• 
  
  
  

  
  

  $10,200 loss

  
  
  
  


• 
  
  
  

  
  

  $22,000 gain

  
  
  
  


• 
  
  
  

  
  

  $33,800 loss

  
  
  
  


• 
  
  
  

  
  

  $11,800 gain