REX Stores Corporation, headquartered in Dayton, Ohio, is one of the leading consumer electronics retailers in the United States, operating more than 200 stores in 37 states. The following is a note from a recent annual report:}

Required:
1. Assuming that REX Stores did not sell any property, plant, and equipment in 2009 , what was the amount of depreciation expense recorded in 2009 ?
2. Assume that REX Stores failed to record depreciation in 2009. Indicate the effect of the error (i.e., overstated or understated) on the following ratios:

(a) earnings per share,

(b) fixed asset turnover, and ( \(c\) ) return on equity. Computations are not required.