Final answer:
The depreciation expense for Year 1 using the double-declining-balance method is $12,000, calculated by doubling the straight-line rate of 25% to 50% and applying it to the asset's cost of $24,000. Thus, the option D is the correct answer.
Step-by-step explanation:
The question involves calculating the depreciation expense for Year 1 using the double-declining-balance method for an asset purchased by Z Company. The asset has a cost of $24,000, a four-year useful life, and a salvage value of $4,000. To calculate the annual depreciation, we first determine the straight-line rate, which is 1 divided by the useful life (1/4, or 25%). We then double this rate for the double-declining-balance method, resulting in a 50% depreciation rate. For the first year, the depreciation expense is calculated by applying this rate to the asset's cost:
Depreciation Expense = Asset Cost × Depreciation Rate = $24,000 × 50% = $12,000.
The correct answer to the question, "What is the amount of depreciation expense for Year 1 using the double-declining-balance method?", is therefore D. $12,000.