Merritt Company purchased land for $60,000 to use as a future site for its new office building. At the end of 2016, the land was worth $67,500. The company decided not to build the new office and sold the land for $66,000 cash in 2017. How does Merritt Companys sale of the land affect its 2017 income statement?

A.Decrease in gross margin of $1,500.

B.Increase in gross margin of $6,000.

C.Gain on the sale of land $6,000.

D.Loss on the sale of land $1,500.