The two groups meet and proceed to fire their weapons into the air as planned. However, Wilkins hears the shooting and thinks that the engagement is real. Arriving at the scene, Wilkins opens fire at the Germans who, thinking they have been tricked, immediately shoot back. The situation immediately goes out of control and Knott's squad shoots all the Germans, but Mundy is fatally wounded and Shutzer is shot but survives. Mundy's final words are to beg the others not to tell Wilkins that the skirmish was intended to be fake. The squad's superior officer arrives, reprimanding them for their conduct, before taking Shutzer back for treatment (they later receive word that he died in the hospital). Left alone again, the four remaining soldiers quietly reflect as they try to celebrate Christmas and clean Mundy's body in a bathtub. Knott makes a $100 bet with the despondent Wilkins that he will survive the war. The squad is soon forced to flee as the Germans attack the area in strength. Carrying Mundy's corpse, the men disguise themselves as medics and escape back to American lines. When there, Knott is informed that Wilkins has been recommended for the Bronze Star and transferred to the motor pool, while the rest of the squad will be sent into the front lines to fight as regular infantry.