Best Buy Co., Inc., headquartered in Richfield, Minnesota, is one of the leading consumer electronics retailers, operating more than 1,200 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 ($ in millions) Current Year Prior Year ASSETS Property and Equipment $ 623 $ 618 Land and buildings Leasehold improvements 2,327 2,227 Fixtures and equipment 5,410 4,998 Property under capital lease 340 300 8,700 8,143 Less accumulated depreciation 6,279 5,850 Net property and equipment 2,421 2,293