Final answer:
The item that will NOT qualify as property under §351 is services Bhatan will provide.
Step-by-step explanation:
According to §351 of the Internal Revenue Code, certain contributions to a corporation can qualify as property. However, not all items will qualify. In this case, the item that will NOT qualify as property under §351 is option (c) services Bhatan will provide.
Section 351 specifically states that services provided by a shareholder are not considered property for the purposes of §351. This means that the value of the services Bhatan will provide in setting up the corporation cannot be counted as a contribution and will not be eligible for the tax benefits and protections associated with §351.
On the other hand, options (a) a logo Bhatan created, (b) equipment valued at $50k with a basis of $0, and (d) cash of $30k all qualify as property for the purposes of §351. A logo, equipment, and cash are all tangible assets that can be contributed to the corporation and satisfy the requirements of §351.