General Electric (GE) purchased a turbine on January 1, 2016, for $1,200,000. The turbine is expected to have a useful life of 15 years and a residual value of $120,000. GE uses the sum-of-the-years'-digits method of depreciation.

Required:

1. Calculate the annual depreciation expense for the first five years.
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.