I6-41. 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 Energy (HSE) Husky is publicly traded on the Toronto Stock Exchange. The Company operates in Western and Atlan tic Canada, the United States and the Asia Pacific Region with upstream and downstream business seg- ments. The company uses IFRS to prepare its financial statements. During 2015, the company reported depreciation expense of $8,484 million. The property and equipment footnote follows. LO5, 6 Oil and Gas Properties Processing, Transportation and Storage Retail and Other Property, Plant and Equipment ($ millions) Upgrading Refining Total Cost $2,274 6,561 2,632 $60,737 2,875 57 $1,296 2,128 173 46 452 76 57 97 Transfers from exploration and evaluation. Changes in asset retirement obligations.... Disposals and derecognition... . (107) 487) 720 (7 (137) (515) 1,876 8136 $2,688 $ 64,990 (18) (24) 1,152 2 $1,465 Accumulated depletion, depreciation, amortization and impairment 2,313 $ (527) (48) $(1154) (1,988) $(1,394) $(28,750) Depletion, depreciation and amortization... (7,811) (106) (365) (154) (8,484) 18 341 390 370 170 512) $(31300 (574) (1260) $(2,676) S(1,546) $(37356) $4,573 1,238 31,987 Exchange adjustments Net book value $769 891 $1,120 1,053 19,088 5,460 1142 27634 Requiredd a. Compute the estimated useful life of Husky Energy's depreciable assets at year-end 2015. Assume b. Estimate the percent used up of Husky Energy's depreciable assets at year-end 2015. How do we c. Consider the disposals and derecognition during the year. This refers to assets that were sold and that land is 10% of "Refining." interpret this figure? removed from the balance sheet during the year. Calculate the net book value of the total PPE dis- posed during the year. Assume that Husky Energy received C$72 million cash proceeds for the year Determine the gain or loss on the disposal