The Cutcut Mower Service owned a truck with an original cost of $75,000 on which there is accumulated depreciation of $55,000. The truck is exchanged for a new truck priced at $90,000 with a trade-in allowance of $12,000 and the balance in cash.
a. The book value of the old truck is ________.
b. The loss on the exchange is ________.
c. The cost basis in the new truck, assuming accounting rules is ________.

Accumulated Depreciation

The total amount of depreciation that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Trade-in Allowance

The amount credited to the buyer by the seller for a traded-in asset toward the purchase of a new asset.

Cost Basis

The original value or purchase price of an asset or investment, used to calculate capital gains or losses for tax purposes.