Estimating Useful Life, Percent Used Up, and Gain or Loss on Disposal Husky Energy is one of Canadas 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	$43,906	$90	$2,729	$9,651	$3,077	$59,453
Additions	2,465	12	62	744	151	3,434
Acquisitions	64			3		67
Transfers from exploration and evaluation	79					79
Intersegment transfers				(5)	5	-
Changes in asset retirement obligations	43	2	(2)	(5)	7	45
Disposals and derecognition	(632)			(10)	(1)	(643)
Exchange adjustments	362	1		773	3	1,139
Dec. 31, 2018	$46,287	$105	$2,789	$11,151	$3,242	$63,574
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	586			10		596
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	$17,890	$43	$1,267	$6,475	$1,235	$26,910
Dec. 31, 2018	18,908	55	1,204	7,218	1,247	28,632

Required a. Compute the average useful life of Husky Energys 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). Answer

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 6.6555%). 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 $4 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 AnswerGainLossNo gain or loss