Question

Required information [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: CONSOLIDATED BALANCE SHEETS ($ in millions) Prior Year Current Year ASSETS Property and Equipment Land and buildings Leasehold improvements Fixtures and equipment $ 714 1,745 $ 773 2,018 4,061 3,047 123 58 Property under capital lease 5,564 6,975 2,785 4,190 2,302 3,262 Less accumulated depreciation Net property and equipment Required: 1. Assuming that Fausett Electronics did not sell any property, plant, and equipment in the current year, what was the amount of depreciation expense recorded during the current year? (Enter your answer in millions.) Depreciation expense million

Answer 1

Depreciation expense = Accumulated depreciation current year - Accumulated depreciation prior year

= 2785 - 2302

= $483 million

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