Required information P8-4 (Algo) Inferring Depreciation Amounts and Determining the Effects of a Depreciation Error on Key Ratios LO8-1, 8-3 [The following information applies to the questions displayed below.] Fausett Electronics, Inc., headquartered in Richfield, Minnesota, is one of the leading consumer electronics retailers, operating more than 1,000 stores across the globe. The following was reported in a recent annual report: ($ in millions) ASSETS CONSOLIDATED BALANCE SHEETS Current Year Prior Year Property and Equipment Land and buildings $ 771 $ 731 Leasehold improvements Fixtures and equipment 2,032 1,747 4,068 3,039 Property under capital lease. 115 62 6,986 5,579 Less accumulated depreciation 2,785 2,295 Net property and equipment 4,201 3,284