Below is the income statement for XYZ Manufacturing for the fiscal year ending December 31, 2023. Perform a detailed analysis of its revenue recognition and expense matching principles.

XYZ Manufacturing Income Statement	Year Ended December 31, 2023
Revenue
Product Sales	$900,000
Service Revenue	$100,000
Total Revenue	$1,000,000
Expenses
Cost of Goods Sold	$400,000
Selling Expenses	$200,000
Administrative Expenses	$150,000
Depreciation Expense	$50,000
Interest Expense	$10,000
Income Tax Expense	$70,000
Total Expenses	$880,000
Net Income	$120,000

Questions:

1. Calculate the matching principle impact by determining the proportion of revenue matched with cost of goods sold.
2. Discuss the significance of depreciation expense in revenue recognition and expense matching. Calculate its proportion relative to total revenue.