Exercise 3-14 Comparing gross margin and gain on sale of land LO 3-3 Lopez Sales Company had the following balances in its accounts on January 1, 2018 Cash Merchandise Inventory $ 65,000 45,000 105,000 85,000 130,000 Land Common Stock Retained Earnings Lopez experienced the following events during 2018: 1. Sold merchandise inventory that cost $36,000 for $76,500 2. Sold land that cost $42,000 for $78,800. Required a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the gain on the sale of land recognized by Lopez. a Gross margin b. Gain on sale of land