Exercise 3-14A (Algo) Comparing gross margin and gain on sale of land LO 3-6 Lopez Sales Company had the following balances in Its accounts on January 1, Year 2 : Lopez experlenced the following events during Year 2 : 1. Sold merchandise Inventory that cost $38,400 for $81,600. 2. Sold land that cost $43,200 for $81,000. Requlred: a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the galn on the sale of land recognized by Lopez