The Forzani Group Ltd. (FGL) franchises several specialty sports retail clothing and sports equipment stores. Its stores include SportChek, Coast Mountain Sports, Sport Mart, and National Sports. Its franchises are Intersport, RnR, Atmosphere, and Sports Experts. As at February 1, 2009 , its fiscal year-end, the company operated 337 corporate stores and sold merchandise to 227 franchises. The following is a note from a recent annual report:

Required:
1. Assuming that FGL did not have any asset impairment losses and did not sell any property, plant, and equipment in fiscal year 2009, what was the amount of depreciation expense recorded in 2009?

2. Assume that FGL 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.

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1. Significant Accounting Policies (c) Capital Assets Capital assets are recorded at cost and are depreciated using the following methods and ratios: Building Declining-balance -4% Building on leased land Straight-line -Lesser of the time of the loase or estimated useful life. Furniture, fixtures, equipment, Straight-line -3-8 years software, and automotive Leasehold improvements Straight-line -Lesser of the time of the lease or estimated useful life. Capital assets at February 1, 2009, and February 3, 2008, are as follows (in thousands of dollars) Lanc Building Building on leased land Furniture, fixtures, equipment, software, and automotive Leasehold improvements Construction in progress Less accumulated depreciation Carrying amount 2009 $ 3,173 20,928 4,583. 2008 $ 3,173 20,928 4,583 243,564 217,365 260,030 239,439 14,029 6,054 546,307 491,542 349,542 302,021 $196,765 $189,521