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The Company maintains an allowance for doubtful accounts based on expected collectability of accounts receivable. The Allowance for doubtful accounts is based on specific identification of uncollectable accounts, the application of historical percentages by aging category and an assessment of the current economic environment. 

## 11 Dispositions of properties 

## Gain on sale of Bass Lake railway line 

During the fourth quarter of 2018, the Company completed the sale of the Bass Lake railway line for gross proceeds of $37 million (U.S. $27 million). The company recorded a gain on sale of $35 million ($26 million after tax) within "Purchased services and other" from the transaction. 

## Gain on sale of Obico 

During the fourth quarter of 2016, the Company completed the sale of its Obico rail yard for gross proceeds of $38 million. The Company recorded a gain on sale of $37 million ($33 million after tax) within "Purchased services and other" from the transaction. 

## Gain on sale of Arbutus Corridor 

In March 2016, the Company completed the sale of CP’s Arbutus Corridor (the “Arbutus Corridor”) to the City of Vancouver for gross proceeds of $55 million. The agreement allows the Company to share in future proceeds on the eventual development and/or sale of certain parcels of the Arbutus Corridor. The Company recorded a gain on sale of $50 million ($43 million after tax) within "Purchased services and other" from the transaction during the first quarter of 2016. 

## 12 Investments 

<img src='content_image/1050588.jpg'>

## 13 Properties 

<img src='content_image/1050589.jpg'>

$^{(1)}$ During 2018, CP capitalized costs attributable to the design and development of internal-use software in the amount of $53 million (2017 – $49 million; 2016 – $46 million). Current year depreciation expense related to internal use software was $49 million (2017 – $55 million; 2016 – $63 million). 

## Capital leases included in properties 

<img src='content_image/1050591.jpg'>

