Final answer:
Under Section 351 of the Internal Revenue Code, cash, land, and inventory qualify as property contributions to a new corporation, but services do not.
Step-by-step explanation:
Bhatan is planning to contribute various items to form a new corporation, which brings us to the question of what types of contributions qualify as property under Section 351 of the Internal Revenue Code. Generally, property includes tangible and intangible assets such as cash, land, and inventory because they are physical items or assets that can be bought and eventually sold. However, the one item listed that does not qualify as property under §351 is services. This means that if Bhatan provides services to the corporation, such services are not considered property for the purposes of §351. As a consequence, the transfer of services in exchange for stock does not entitle the service provider to the same non-recognition of gain or loss treatment as transfers of property.