Estimating Useful Life, Percent Used Up, and Gain or Loss on Disposal 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 IFRS to prepare its financial statements. During 2018, the company reported depreciation expense of $2,501 milion. The property and equipment footnote follow Oland Processing Retail Gas Transportation and Properties and Storage Upgrading Refining Other Total $112 12 2879 511 33,000 $7,00 02 744 151 143 5540 2,055 14 79 TI 2 79 ( 5 123 15) 7 45 1109 1041 273 , 114 514 5974372,729 (632) 362 556,141 1 5127 Property. Plant and Equipment in CS millions) Cost Dec 31, 2017 Additions Acoustion Transfers from exploration and evaluation Intersement transfers Changes in assettirement obligations Disposals and dereconition Exchange adjustments Dec 31, 2018 Accumulated depletion, depreciation, amortization, and impairment Dec 31, 2017 Depletion, deprecation amortization and impairment Disposals and derecognition Exchange adjustments Dec 31, 2018 Net book value Dec 31, 2017 Dec 31, 2018 47 (2) $26.016) (1.611) 586 (13) 51273799 1.42 2.176) 1.542 23 1121 (503 (152) 2.9911 10 596 1264 (1) (404) 1.585) 1933 1934 12) (1) $1503 523344 29.362 $65 72 $1,917 854 58,772 51957 $41065 9.515 1979 42.70 78F > D 2 500 1.5851 244 Net book value Dec 31, 2017 Dec 31, 2018 128,344 29,162 31.917 1.854 10.272 11,967 141,015 2767 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 6.8 for 6.77555), years b. Estimate the percent used up of Husky Energys depreciable assets in 2018. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6955%). c. Consider the disposals and derecognition during the year. This refers to assets that were sold and removed from the balance sheet curie2016. Calculate the netbook value of the total PPE disposed during the year. Assume that Husky Energy received 15 million cash proceeds for the year. Determine the gain or loss on the dinosal Note: Do not use any negative signs with your answers Estimating Useful Life, Percent Used Up, and Gain or Loss on Disposal 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 IFRS to prepare its financial statements. During 2018, the company reported depreciation expense of $2,501 milion. The property and equipment footnote follow Oland Processing Retail Gas Transportation and Properties and Storage Upgrading Refining Other Total $112 12 2879 511 33,000 $7,00 02 744 151 143 5540 2,055 14 79 TI 2 79 ( 5 123 15) 7 45 1109 1041 273 , 114 514 5974372,729 (632) 362 556,141 1 5127 Property. Plant and Equipment in CS millions) Cost Dec 31, 2017 Additions Acoustion Transfers from exploration and evaluation Intersement transfers Changes in assettirement obligations Disposals and dereconition Exchange adjustments Dec 31, 2018 Accumulated depletion, depreciation, amortization, and impairment Dec 31, 2017 Depletion, deprecation amortization and impairment Disposals and derecognition Exchange adjustments Dec 31, 2018 Net book value Dec 31, 2017 Dec 31, 2018 47 (2) $26.016) (1.611) 586 (13) 51273799 1.42 2.176) 1.542 23 1121 (503 (152) 2.9911 10 596 1264 (1) (404) 1.585) 1933 1934 12) (1) $1503 523344 29.362 $65 72 $1,917 854 58,772 51957 $41065 9.515 1979 42.70 78F > D 2 500 1.5851 244 Net book value Dec 31, 2017 Dec 31, 2018 128,344 29,162 31.917 1.854 10.272 11,967 141,015 2767 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 6.8 for 6.77555), years b. Estimate the percent used up of Husky Energys depreciable assets in 2018. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6955%). c. Consider the disposals and derecognition during the year. This refers to assets that were sold and removed from the balance sheet curie2016. Calculate the netbook value of the total PPE disposed during the year. Assume that Husky Energy received 15 million cash proceeds for the year. Determine the gain or loss on the dinosal Note: Do not use any negative signs with your answers
