Rindy Inc. has a popular line of beaded jewellery. Rindy reported net earnings of $21,000 for 2017. Rindy depreciates furniture, fixtures, equipment and automotive assets on a straight-line basis over five years and assumes no residual value. Depreciation expense for the year totaled $1,000 and the assets are four years old.
What would net income be for 2017 if Rindy used the double-diminishing balance (DDB) instead? The company's income tax rate is 25%. How does management choose which depreciation method to use?