Response to the following questions:
1. Of the three common depreciation methods, which is most widely used?
2. a. Why is an accelerated depreciation method often used for income tax purposes?
b. What is the Modified Accelerated Cost Recovery System (MACRS), and under what conditions is it used?
3. Spiral Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is not intended to be used in Spiral's business operations. Where should such real estate be listed in the balance sheet?