Assume the following: You, a US taxpayer, own $100\%$ of a corporation that is taxed as a C corporation $($i$.$e$.,$ pays corporate tax$)$ The corporation is paying corporate tax at a rate of $21\%.$ You have financed the corporation solely through equity $($e$.$g$.,$ either equity contributions or the retention of corporate profits$).$ You desire to minimize the amount of the corporation's income that is subject to double tax $($i$.$e$.,$ tax at the corporate level, and tax upon the payment of dividends to you$).$ The corporation will distribute all of its taxable income to you as a dividend. Given these simple assumptions, based on the course materials which statement below is TRUE? $1.$ You may want to consider converting your C corporation to an S corporation to avoid $2$ levels of tax $($i$.$e$.,$ at the corporate level and the shareholder level$).2.$ Instead of financing the corporation with only equity, you may want to consider using some loans from you to the corporation. However, the interest income at the shareholder level could be subject to a higher current tax rate $($e$.$g$.,37\%$ at the shareholder level vs$.$ the $21\%$ corporate tax rate$).3.$ Answers $1$ and $2$ are both TRUE. $4.$ Answers $2$ and $3$ are both FALSE