Best Buy Co., Inc., headquartered in Richfield, Minnesota, is one of the leading consumer electronics retailers, operating more than 1,100 stores across the globe. The following was reported in a recent annual report:

Required:
1. Assuming that Best Buy did not sell any property, plant, and equipment in the current year, what was the amount of depreciation expense recorded during the current year?
2. Assume that Best Buy failed to record depreciation during the current year. Indicate the effect of the error (i.e., overstated, understated, or no effect) on the following ratios:
a. Earnings per share.
b. Fixed asset turnover.
c. Current ratio.
d. Return on assets.

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CONSOLIDATED BALANCE SHEETS (partial) Current Year ($ in millions) ASSETS Property and Equipment Land and buildings Leasehold improvements Fixtures and equipment Property under capital and finance leases Less accumulated depreciation Net property and equipment $ 650 2,203 6,286 89 9,228 6,900 2,328 Prior Year $ 637 2,119 5,865 579 9,200 6,690 2,510