LO 3-3 Exercise 3-14 Comparing gross margin and gain on cale of land Lopez Sales Company had the following balances in its accounts on January 1, 2018: Cash Merchandise Inventory Land Common Stock Retained Earnings $42.000 36.000 50,000 70,000 58.000 Lopez experienced the following events during 2018: 1. Sold merchandise inventory that cost $22,000 for $40,500. 2. Sold land that cost $30,000 for $46,000. 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. c. Comment on how the gross margin versus the gain will be recognized on the income statement. d. Comment on how the gross margin versus the gain will be recognized on the statement of cash flows. LO 3-3