Your client owns a $55\%$ equity interest in ACME Corporation. Your client and ACME agree to transact a like$-$kind exchange of a high$-$rise condo owned by ACME for a warehouse owned by your client. Both parties had gains in the property transferred which were deferred under Section $1031$ at the time of the transfer. Your client subsequently sells the high$-$rise condo $18$ months later. Which of the following are true?

Your client is a related party to ACME Corporation.Your client's sale of the high$-$rise condo has no impact on ACME Corporation.ACME Corporation will be required to recognize the deferred gain on the transfer of the high$-$rise condo.

$1$ only.

$2$ only.

$1$ and $2.$

$1$ and $3.$

Group of answer choices

A

B

C

D