Impact of Euro Appreciation on ABC Corporation's Financials

ABC Corporation, a U.S.-based multinational entity, engages in various transactions denominated in foreign currencies. During the current year, ABC purchased goods from a supplier in Europe for €100,000 when the exchange rate was $1.20/€. During the year, due to fluctuating exchange rates, the euro appreciated to $1.25/€. When ABC settles the invoice, it recognizes any gain or loss resulting from the exchange rate change.

What effect does the exchange rate fluctuation have on ABC Corporation if it settles the invoice after the euro has appreciated?