JCS Incorporated experienced the following transactions during its first year of business. The company purchased $19,300 of merchandise from Kent Company. The company paid $7,300 for selling and administrative expenses and purchased land for $8,600. All of the merchandise purchased was sold for $37,000 cash. The amount of gross margin for this merchandise is:

Multiple Choice

• $21,100
• $15,900
• $37,000
• $17,700