Phillips Sales Company had the following balances in its accounts as of January 1, 2014. 

Cash $64,000 

Merchandise inventory 44,000 

Land 104,000 

Common stock 84,000 

Retained earnings 128,000 

Phillips experienced the following events during 2014. 

1. Sold merchandise inventory that cost $35,200 for $74,800. 

2. You sold land that cost $41,600 for $78,000. 

Required 

a. Determine the amount of gross margin recognized by Phillips. 

b. Determine the amount of the gain on the sale of land recognized by Phillips.