Rocky Inc. has a popular line of beaded jewellery, Rocky reported net earnings of $22.000 for 2017. Rocky depreciates furniture, foxtures, equipment and automotive assets on a straight-line basis over five years and assumes no residual value. Depreciation expense for the year totalled $1.150, and the assets are four years old What would net income be for 2017 Rocky used the double diminishing balance (DOB) method instead? The company's income tax rate is 21%. How does management choose which depreciation method to use? What would net income be for 2017 Rocky used the double diminishing balance (DB) method instead? The company's income tax rate is 21%. Begin by computing the cost of the furniture, xtures, equipment and automotive assets The cost of the furniture, fatures, equipment, and automotive assets is Next, complete the table below to compute the net income for 2017 under double-diminishing balance (DDB) depreciation (Use parentheses or a minus sign to indicate numbe Net income under straight line depreciation Difference in depreciation Swagtine depreciation as reported O depreciation for 2017 Change in depreciation expense Change in income tax Net income for 2017 using a depreciation How does management choose which depreciation method to use? Management chooses the method that reflects the patter in which the asset will be used. For example, if the method tha t the method is suited for those assets that wear out due to physical use while the set generales revenue evenly over time, the method should be used. The method is best for assets that generate greater amounts of revenue earlier in their useful live