Foreign Exchange. The Hartstock Company sold \(\$ 1,000,000\) of equipment to Agency Ltd. of London, England. The sale was billed in pounds at an exchange rate of \(\$ 1.50\) per pound. The terms were net 90 days. The exchange rate at settlement date was \(\$ 1.45\).

Subcomponents for the equipment sold were purchased from a Canadian producer for \(C \$ 200,000\). The exchange rate at the purchase date was \(\$ 0.75\) per Canadian dollar. When Hartstock paid the Canadian producer, the exchange rate was \(\$ 0.72\).

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Record the transactions in T-accounts to show the gain(s) or loss(es).