Rindy Inc. has a popular line of beaded jewellery. Rindy reported net earnings of \(\$ 21,000\) for 2020. Rindy depreciates furniture, fixtures, equipment and automotive assets on a straightline 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 2020 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?