Amgen, Inc. is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Located in the Conejo Valley, Amgen is the world’s largest independent biotechnology firm. Amgen reported the following in a disclosure note accompanying its 2016 financial statements ($ in millions): 

Also, the company disclosed that the total cost of property and equipment included $295 and $319 millions in land at the end of 2016 and 2015, respectively. In addition, the statement of cash flows for the year ended December 31, 2016, reported the following as cash flows from investing activities: 

                                                                                  ($ in millions) 

Purchases of property and equipment.............................$(738) 

Proceeds from the sale of property and equipment.........78   

The statement of cash flows also reported 2016 depreciation and amortization of $2,105 million (depreciation of $619 and amortization of $1,486). 

Required: 

1. Assume that all property and equipment acquired during 2016 were purchased for cash. Determine the amount of gain or loss from sale of property and equipment that Amgen recognized during 2016. 

2. Assume that Amgen uses the straight-line method to depreciate property and equipment (excluding land). What is the approximate average service life of depreciable assets?

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2016 2015 $12,427 $12,172 Property and equipment Less: Accumulated depreciation (7,466) (7,265) Property, plant, and equipment-Net $ 4,961 $ 4,907