Usrey Sales Company had the following balances in its accounts on January 1, 2012.
Cash ............ $ 70,000
Merchandise Inventory .... 50,000
Land ............ 120,000
Common Stock ........ 100,000
Retained Earnings ....... 140,000
Usrey experienced the following events during 2012.
1. Sold merchandise inventory that cost $40,000 for $75,000.
2. Sold land that cost $50,000 for $80,000.

Required
a. Determine the amount of gross margin recognized by Usrey.
b. Determine the amount of the gain on the sale of land recognized by Usrey.
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.