What portion of the new properties' bases qualifies for the Section 179 deduction in the bakery scenario?

In the context of the Section 179 deduction, it's important to first understand that this provision allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year, rather than depreciating it over time.

To determine the portion of the new properties' bases that qualifies for the Section 179 deduction, one must consider the total cost of qualifying assets placed in service during the year and also ensure that the businesses involved meet the limits imposed by Section 179.

If the selected answer is $4,720, this implies that this is the amount that has been determined to be eligible based on the bakery's asset purchases. The actual qualifying amount is derived from both the total cost of the assets acquired and specific limitations or thresholds applicable.

This can include assessing whether the amount exceeds the annual deduction limit, the total investments in qualifying assets, and ensuring the business income supports the deduction of the full amount.

In this scenario, if $4,720 represents the calculated eligible portion based on the bakery's expense records, it suggests that the bakery made an acquisition of equipment that meets the leading qualifications for Section 179 in the relevant tax year, making it the correct selection for the question asked.