Quistion 5 part 1 Heather and her partners operate a profitable partnership. Because the business is expanding, the partners would like to transfer it to a newly created corporation. Heather is concerned, however, over the possible tax consequences that would result from incorporating. Heather is also worried that once the partnership incorporates, the business will be subject to the Federal corporate income tax. Select whether each of the following statements is "True" or "False" regarding the newly created corporation. a. The business may be subject to the Federal corporate income tax. b. If Heather selects an Selection, the business will operate as a partnership but be taxed like a corporation. c. The corporate tax rate might be lower than Heather's individual tax rates. Part 2 Select either "Example" or "Not an example" to identify the following items with regard to the wherewithal to pay concept. 1. Like-kind exchanges. 2. Involuntary conversions. 3. Transfer of property to a controlled corporation. 4. Receipt of nontaxable interest. 5. Tax-free reorganization. 6. Transfer of property to a partnership