(i) Alexander Company purchased a piece of equipment for $12,000 and depreciated it for three years over a five-year estimated life with an expected residual value at the end of five years of $2,000. At the end of the third year. Alex decided to upgrade to equipment with increased capacity and sold the original piece of equipment for $7,200. Calculate the gain or loss on the disposal at the end of the third year (ii) ADM Labs is a publicly owned company with several issues of capital stock outstanding Over the pust decade, the company has consistently came modest profits and has increased its common stock dividend annually by 5 or 10 cents per share. Recently the company introduced several new products that you believe will cause future sales and profits to increase dramatically. You also expect a gradual increase in long-term interest rates from their present level of about 11 percent to, perhaps, 12 percent to 1244 percent. On the basis of these forecasts, explain whether you would expect to see the market prices of the following issues of ADM capital stock increase or decrease. Explain your reasoning in each answer. a. 10 percent, S100 par value preferred stock (currently selling at $90 per share). b. $5 par value common stock (currently paying an annual dividend of $2.50 and selling at $40 per share). c. 7 percent, S100 par value convertible preferred stock (currently selling at $125 per share).