Property, Plant and Equipment (in C$ millions) Oil and Gas Properties Processing, Transportion and Storage Upgrading Refining Retail and Other Total Cost Dec 31, 2017 $ 41,815 $ 86 $ 2,599 $ 9,191 $ 2,930 $ 56,621 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 $ 44,196 $ 101 $ 2,659 $ 10,691 $ 3,090 $ 60,737 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 Dispoals 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 $ 15,799 $ 39 $ 1,137 $ 6,015 $ 1,088 $ 24,078 Dec 31, 2018 $ 16,817 $ 51 $ 1,074 $ 6,758 $ 1,100 $ 25,800 a Estimate the percent used up of Husky's depreciable assets in 2018 b 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 total PPE disposed during the year Assume that Husky Energy received $4 Million cash proceeds for the year Determine the gain or loss on disposal

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 29, 2024

Property, Plant and Equipment (in C$ millions) Oil and Gas Properties Processing, Transportion and Storage Upgrading Refining Retail and Other Total Cost Dec. 31, 2017

Property, Plant and Equipment (in C$ millions)	Oil and Gas Properties	Processing, Transportion and Storage	Upgrading	Refining	Retail and Other	Total
Cost
Dec. 31, 2017	$ 41,815	$ 86	$ 2,599	$ 9,191	$ 2,930	$ 56,621
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	$ 44,196	$ 101	$ 2,659	$ 10,691	$ 3,090	$ 60,737

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
Dispoals 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	$ 15,799	$ 39	$ 1,137	$ 6,015	$ 1,088	$ 24,078
Dec. 31, 2018	$ 16,817	$ 51	$ 1,074	$ 6,758	$ 1,100	$ 25,800

a. Estimate the percent used up of Husky's depreciable assets in 2018.

b. 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 total PPE disposed during the year. Assume that Husky Energy received $4 Million cash proceeds for the year. Determine the gain or loss on disposal.