Coca-Cola Company purchased bottling equipment on January 1, 2021, for $400,000. The equipment is expected to have a useful life of 8 years and a residual value of $40,000. Coca-Cola uses the units-of-production method of depreciation. The equipment produced 50,000 units in 2021, 60,000 units in 2022, and 70,000 units in 2023.

Required:

1. Calculate the depreciation expense for each year.
2. Prepare the journal entry for the depreciation expense for the year ending December 31, 2023.
3. Discuss the impact of different depreciation methods on the financial statements.