Fever Inc. is planning to acquire Clark Enterprises, a freestanding C corporation. Caitlin has owned Clark for ten years, and she has a basis of $$1,000,000$ in her Clark stock. Clark Enterprises$$ tax$-$basis balance sheet contains $$14,000,000$ of assets and no liabilities. Clark$$s identifiable assets have a fair market value of $$16,000,000.$ The corporate tax rate is $21\%.$ The long$-$term capital gains rate for individual taxpayers is $20\%.$

Assume Fever uses $$10,000,000$ of its voting common stock and $$7,000,000$ cash to acquire Clark from Caitlin in a transaction that qualifies as a merger under state law in Michigan. Which of the following statements are true regarding the tax consequences of the acquisition? $($Select all that are true.$)$

Question $2$ options:

The tax consequences would be the same if Fever used nonvoting stock.

Caitlin's tax basis in her Fever stock is $$17,000,000.$

Fever records tax$-$deducible goodwill of $$2,000,000.$

Caitlin pays tax of $$0$ at the time of the transaction.