Winter Treats Company purchased a special purpose machine from Blanco Company, a French firm, on credit for 50,000 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 Winter Treats incur an exchange g...

Date of purchase The cost of the machine in dollars 50 ...

Winter Treats Company purchased a special-purpose machine from Blanco Company, a French firm, on credit for 50,000.

Question:

Winter Treats Company purchased a special-purpose machine from Blanco Company, a French firm, on credit for €50,000. At the date of purchase, the 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 Winter Treats incur an exchange gain or loss? How much was it?

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...