Cash	$35,000
Merchandise Inventory	25,000
Land	60,000
Common Stock	50,000
Retained Earnings	70,000

Phillips experienced the following events during 2014.

1.	Sold merchandise inventory that cost $20,000 for $37,500.
2.	Sold land that cost $25,000 for $40,000.

Required
a.	Determine the amount of gross margin recognized by Phillips.

b.	Determine the amount of the gain on the sale of land recognized by Phillips.