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 $58,541 $120 $3,639 $12,867 $4,102 $79,269 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 $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 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 $32,525 $73 $2,177 $9,691 $2,260 $46,726 Dec 31, 2018 33,543 85 2,114 10,434 2,272 48,448 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 8 for 6 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 7 for 6 6555 ) 1 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 $

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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 $58,541 $120 $3,639 $12,867 $4,102 $79,269 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 $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 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 $32,525 $73 $2,177 $9,691 $2,260 $46,726 Dec  31, 2018 33,543 85 2,114 10,434 2,272 48,448 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 8 for 6 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 7  for 6 6555  )  1  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  $

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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,

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	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	2,465	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	$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	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	$32,525	$73	$2,177	$9,691	$2,260	$46,726
Dec. 31, 2018	33,543	85	2,114	10,434	2,272	48,448