Company B, a construction firm, acquired machinery for $500,000. The machinery has an estimated useful life of 10 years and a salvage value of $50,000. Using the straight-line depreciation method, calculate the annual depreciation expense. Discuss how this depreciation expense affects the company's profitability and financial position over time, adhering to the principles of Money Measurement and Going Concern.

The annual depreciation expense of the machinery impacts the company's income statement by reducing its net income, thus affecting its profitability. Moreover, the accumulated depreciation is reflected on the balance sheet, reducing the carrying value of the machinery over time.