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 ________.

Persistent increases in the overall level of prices have been the norm.