The Gap, Inc., is a global retailer of apparel, accessories, and personal care products for women, men, and children under the Gap, Banana Republic, Old Navy, Athleta, Intermix, Janie and Jack, and Hill City brands. The Company operates approximately 3,900 stores across the globe, as well as online. The following is a note from a recent annual report:

Required:
1. Assuming The Gap, Inc., had no asset impairment write-offs and sold property, plant, and equipment in the most recent year with a cost of $568 million and an accumulated depreciation of $439 million, what was the amount of depreciation expense recorded in the current year?
2. Assume that The Gap, Inc., failed to record depreciation in the current year. Indicate the effect of the error (i.e., overstated, understated, or no effect) on the following ratios:
a. Earnings per share.
b. Fixed asset turnover.
c. Current ratio.
d. Return on assets.

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Note 2. Additional Financial Statement Information Property and Equipment Property and equipment are stated at cost less accumulated depreciation and consist of the following: ($ in millions) Leasehold improvements Furniture and equipment Software Land, buildings, and building improvements Construction-in-progress Property and equipment, at cost Less: Accumulated depreciation Property and equipment, net of accumulated depreciation Current Year $ 2,923 2,802 1,626 1,408 202 8,961 (5,839) $ 3,122 Prior Year $ 3,104 2,732 1,525 1,123 183 8,667 (5,755) $ 2,912