Jolly LLC acquires a commercial building and land with a value of $10,000,000. Consider the following facts: Per the assessor website, 20% of the value is allocated to land. Jolly LLC will hold the real estate for 10 years and expects to sell for $15,000,000 Assume the ordinary tax rate is 39% The cost segregation study will cost $50,000 The Cost Segregation study will accelerate depreciation for the following: i. $2,500,000 of assets will be depreciated over 5 years ii. $2,500,000 of assets will be depreciated over 10 years

Based on the facts above, do you think it would be beneficial to perform a cost segregation study and why or why not? What are the general advantages of cost segregation studies?