The Greenbay Motor Company ordered six German-built engines at $15,000 each when the direct exchange rate was $1.2500 per euro and elected not to cover the obligation with a forward contract. When the bill was due three months later, the rate was $1.1500. Greenbay's marginal tax rate is 40%.

a. How much was the exchange rate gain or loss on the deal?

b. What kind of exchange rate gain or loss was it?

c. What was the tax impact?