Step 1: Understanding the Geometry.
The joint wooden block has dimensions 12 cm by 7 cm, with cuts at 45-degree angles at points AA and BB. The shaded area is the triangular region formed by these cuts.
Step 2: Area of the Shaded Triangle.
The base of the triangle is 12 cm, and the height is 7 cm. Since the triangle is right-angled, the area is given by:
\[
\text{Area} = \frac{1}{2} \times \text{Base} \times \text{Height} = \frac{1}{2} \times 12 \, \text{cm} \times 7 \, \text{cm} = 42 \, \text{cm}^2.
\]
\[
\boxed{42 \, \text{cm}^2}
\]