King Corporation purchased a machine from Gutten Corporation on credit for 150,000. At the date of purchase,

Question:

King Corporation purchased a machine from Gutten Corporation on credit for €150,000. At the date of purchase, the exchange rate was $1.00 per euro. On the date of the payment, which was made in euros, the value of the euro was $1.25. Did King incur an exchange gain or loss? How much was it?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...