Estimating Useful Life, Percent Used Up$,$ and Gain or Loss on Disposal

follows.

Required

a$.$ Compute the average useful life of Husky Energy's depreciable assets in $2018.$ Assume that land is $10\%$ of "Refining."

Note: Round your answer to one decimal place $($for example, enter $6\mathrm{.}8$ for $6\mathrm{.}77555).$

& yearsEstimating Useful Life, Percent Used Up$,$ and Gain or Loss on DisposalRequired

a$.$ Compute the average useful life of Husky Energy's depreciable assets in $2018.$ Assume that land is $10\%$ of "Refining."

Note: Round your answer to one decimal place $($for example, enter $6\mathrm{.}8$ for $6\mathrm{.}77555).$

years

b$.$ Estimate the percent used up of Husky Energy's depreciable assets in $2018.$

Note: Round percentage to one decimal place $($for example, enter $6\mathrm{.}7\%$ for $6\mathrm{.}6555\%).$

$(\%$

Energy received $$6$ million cash proceeds for the year. Determine the gain or loss on the disposal.

Note: Do not use any negative signs with your answers.

$$43$Required

a$.$ Compute the average useful life of Husky Energy's depreciable assets in $2018.$ Assume that land is $10\%$ of "Refining."

Note: Round your answer to one decimal place $($for example, enter $6\mathrm{.}8$ for $6\mathrm{.}77555).$

years

b$.$ Estimate the percent used up of Husky Energy's depreciable assets in $2018.$

Note: Round percentage to one decimal place $($for example, enter $6\mathrm{.}7\%$ for $6\mathrm{.}6555\%).$

$(\%$

Energy received $$6$ million cash proceeds for the year. Determine the gain or loss on the disposal.

Note: Do not use any negative signs with your answers.

$$43$

Husky Energy is one of Canada$$s largest integrated energy companies. Based in Calgary, Alberta, Husky is publicly traded on the Toronto Stock Exchange. The Company operates in Western and Atlantic Canada, the United States and the Asia Pacific Region with upstream and downstream business segments. The company uses IFRS to prepare its financial statements. During $2018,$ the company reported depreciation expense of $$2,591$ million. The property and equipment footnote follows.

Oil and Processing, Retail

Gas Transportation and

Property, Plant and Equipment $($in C$ millions$)$ Properties and Storage Upgrading Refining Other Total

Cost

Dec. $31,2017$ $$58,541$ $$120$ $$3,639$ $$12,867$ $$4,102$ $$79,269$

Additions $2,46512627441513,434$

Acquisitions $64367$

Transfers from exploration and evaluation $7979$

Intersegment transfers $(5)5-$

Changes in asset retirement obligations $432(2)(5)745$

Disposals and derecognition $(632)(10)(1)(643)$

Exchange adjustments $362177331,139$

Dec. $31,2018$ $$60,922$ $$135$ $$3,699$ $$14,367$ $$4,267$ $$83,390$

Accumulated depletion, depreciation, amortization, and impairment

Dec. $31,2017$ $$(26,016)$ $$(47)$ $$(1,462)$ $$(3,176)$ $$(1,842)$ $$(32,543)$

Depletion, depreciation, amortization, and impairment $(1,811)(2)(123)(503)(152)(2,591)$

Disposals and derecognition $58610596$

Exchange adjustments $(138)(1)(264)(1)(404)$

Dec. $31,2018$ $$(27,379)$ $$(50)$ $$(1,585)$ $$(3,933)$ $$(1,995)$ $$(34,942)$

Net book value

Dec. $31,2017$ $$32,525$ $$73$ $$2,177$ $$9,691$ $$2,260$ $$46,726$

Dec. $31,201833,543852,11410,4342,27248,448$

Required

a$.$ Compute the average useful life of Husky Energy$$s depreciable assets in $2018.$ Assume that land is $10\%$ of $$Refining$.$

Note: Round your answer to one decimal place $($for example, enter $6\mathrm{.}8$ for $6\mathrm{.}77555).$

Answer

years

b$.$ Estimate the percent used up of Husky Energy$$s depreciable assets in $2018.$

Note: Round percentage to one decimal place $($for example, enter $6\mathrm{.}7\%$ for $6\mathrm{.}6555\%).$

Answer

$\%$

c$.$ Consider the disposals and derecognition during the year. This refers to assets that were sold and removed from the balance sheet during $2018.$ Calculate the net book value of the total PPE disposed during the year. Assume that Husky Energy received $$6$ million cash proceeds for the year. Determine the gain or loss on the disposal.

Note: Do not use any negative signs with your answers.

$Answer

$43$

Answer

Loss