Exercise 9-3 On March 1, 2017, Pharoah Company acquired real estate, on which it planned to construct a small office building, by paying $77,500 in cash. An old warehouse on the property was demolished at a cost of $7,700; the salvaged materials sold for $1,600. Additional expenditures before construction began included $1,100 attorney's fee for work ncening the land purchase, $4, 250 real estate broker's fee, $8,600 architect's fee, and $13,500 to put in driveways and a parking lot (a) Determine the amount to be reported as the cost of the land. Cost of land APPLIED SKILLS