Check my work mode: This shows what is correct or incorrect for the work you 2 Exercise 3-14 Comparing gross margin and gain on sale of land LO 3-3 5 points Lopez Sales Company had the following balances in its accounts on January 1, 2018 Cash Merchandise Inventory Land Common Stock Retained Earnings $ 60,000 40,00 100,000 80,000 120,00 Lopez experienced the following events during 2018: 1. Sold merchandise Inventory that cost $32,000 for $68,000. 2. Sold land that cost $40,000 for $75,000. 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 Answer is complete but not entirely correct. 53 X a Gross margin Gain on sale of land b IS 35,000