philips sales company had the followjng balances jn irs accounts on january 1 2014

Phillips Sales Company had the following balances in its accounts on January 1, 2014 Cash Merchandise Inventory Land Common Stock Retained Earnings $65,000 45,000 105,000 85,000 130,000 Phillips experienced the following events during 2014. 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 Phillips. Gross margin b. Determine the amount of the gain on the sale of land recognized by Phillips. Gain on sale of land