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Discuss powers, duties and privileges of an insolvent during sequestration.
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- Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.Can a member who contributed an asset demand for its return, transfer or conveyance upon dissolution when it was initially contributed upon a condition to not return, transfer or convey it back?Using the tax rules for abandoned property, recommend the tax treatment of any potential losses incurred to the taxpayer and appropriate documentation (proof of abandonment) for an audit.