Ford Motor Company purchased machinery on January 1, 2022, for $300,000. The machinery is expected to have a useful life of 10 years and a residual value of $30,000. Ford uses the straight-line method of depreciation.

Required:

1. Calculate the annual depreciation expense.
2. Prepare the journal entry for the depreciation expense for the year ending December 31, 2023.
3. Discuss the impact of depreciation on the financial statements and decision-making.