Sparty Goods reported the following on its 12/31/2018 balance sheet:

In millions	12/31/2018	12/31/2017
Property and Equipment, at cost	$14,500	$12,000
Less: Accumulated Depreciation	$6,000	$5,000
Property and equipment, net	$8,500	$7,000

Assume Sparty had not asset impairment write offs but did sell property and equipment in 2018 that cost $800 million and had accumulated depreciation of $350 million.

1.) What was the amount of depreciation expense recorded in 2018?

2.) Assume Sparty mistakenly recognized depreciation expense that was half of what it should have been in 2018. Indicate the effect of the error (i.e., over or understated) on EPS, Fixed Asset Turnover, and Current Ratio as of 12/31/2018: