39. LO.1, 2 Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. (Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation.) Decision Making Assets Fair Market Value Rafael's Adjusted Basis $ 60,000 Inventory $100,000 Equipment 150,000 105,000 Shelving 80,000 65,000 a. What is Rafael's recognized gain or loss? b. What is Rafael's basis in the stock? c. What is Crane's basis in the inventory, equipment, and shelving? d. If Rafael has no intentions of selling his Crane stock for at least 15 years, what action would you recommend that Rafael and Crane Corporation consider? How does this change the previous answers