P8-4 Inferring Depreciation Amounts and Determining the Effects of a Depreciation Error on Key Ratios. Best Buy Co., Inc., headquartered in Richfield, Minnesota is one of the leading consumer electronics retailers, operating more than 1,000 stores in the United States, Europe, Canada, China, and Mexico. The following was reported in a recent annual report: Consolidated Balance Sheet (In Millions) 28-Feb-09 1-Mar-08 Assets Property and Equipment Land and Buildings $755 $732 Leasehold Improvements $2,013 $1,752 Fixtures and Equipment $4,060 $3,057 Property under capital lease $112 $67 $6,940 $5,608 Less Accumulated Depreciation $2,766 $2,302 Net Property and Equipment $4,174 $3,306 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 or understated) on the following ratios: a. Earnings per share b. Fixed asset turnover c. Current ratio d. Return on assets