MNC Corp. (a U. S.-based company) sold parts to a South Korean customer on December 1, 2017, with payment of 10 million South Korean won to be received on March 31, 2018. The following exchange rates apply: Date Spot Rate Forward Rate (to March 31, 2018) December 1, 2017 $ 0.0035 $ 0.0034 December 31, 2017 0.0033 0.0032 March 31, 2018 0.0038 N/A MNC's incremental borrowing rate is 12 percent. The present value factor for three months at an annual interest rate of 12 percent (1 percent per month) is 0.9706. Problem 9-11 (LO 9-2) Assuming that MNC did not enter into a forward contract, how much foreign exchange gain or loss should it report on its 2017 income statement with regard to this transaction?