Mali Mengi (aged 57) died in a road accident on 31 December 2019. On 1 May...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mali Mengi (aged 57) died in a road accident on 31 December 2019. On 1 May 2020 after his executors had paid all debts, (except for the mortgage on his freehold house and debt to Mkopeshaji) testamentary and funeral expenses, his estate was ascertained as follows: Sh.'000' Cash in bank accounts Freehold house Toyota corolla Nissan sunny Television and music system Debt due from Pungulu Furniture and personal effects 10,000 ordinary shares in Cement Ltd. 4,500 ordinary shares in Soko Mjinga Ltd. Sh.800,000 10% Kenya stock Income received to date Less: Mortgage interest paid 31 March 2020 1. 2. Extracts from Mali Mengi's will left bequests as follows: 3. 4. ܘ ܣ ܐ ܩ ܩ 7. J Interest Dividend from Soko Mjinga Limited 9. 10. 11. 12. 13. 14. 15. 16. 8. To my driver Ndeleva Sh.150,000 230 37 267 120 To my friend, Mlungu Sh. 100,000. To some of my sisters-in-law Sh.300,000. To my cousin, Nipa, my painting of the Mausoleum by Kikuvu. Sh.'000' 4,250 3,250 360 220 105 40 302 1,200 370 165 147 To each of my sons, Kikwajuni, Mnazini and Mwembeni Sh.1 million. To my wife Darajani, I leave my furniture, household and personal effects and the residue of my estate. To my daughter Nyanjale, my freehold house free of all duties. The house was subject to a mortgage of Sh.1 million earning interest at 24% per annum payable 31 March and 30 September. Duty on the house amounts to Sh.130,000. To my friend Kisitu, one of the motor cars owned by me at the time of my death he may choose. 10,409 To my friend Shimba, my holding of Sh.800,000 110%; Shimba sh.100,000. To my sister Malindi, Sh.300,000. To my personal assistant, Sijapata, half of my holdings in Cement Ltd. To my niece Sinani, 4,000 ordinary shares from my holding of such shares in Cement Ltd. To my nephew Shaibu Sh.200,000 payable out of my shares in Cement Ltd. To my friend Mlungu Sh.50,000 To my neighbor Jirani, Sh. 50,000. To my sister Dada, Sh.100,000 to establish a business. stock. Mali Mengi owed Mali Mengi's executors ascertained that the following beneficiaries were dead: a. Son Mnazini, died in 2017 leaving a wife and two children b. Son Mwembeni, died 2018 leaving a wife. c. Sister Malindi, died in 2016 leaving two daughters. d. Driver, Ndeleva aged 60 died in the same accident as Mali Mengi. It was impossible to determine the order in which Mali Mengi and Ndeleva died. The executors also advise you that: (i) (ii) (iii) (iv) (v) Kisitu chose the Toyota Corolla. Mali Mengi sold his painting of the mausoleum, using the proceeds to purchase his holdings in Soko Mjinga Ltd. There is no such investment as 110% Kenya Stock. The reference in the will to 110% is thought to be a typing error not previously noticed. Jirani replied in writing that he did not want anything from Mali Mengi because Mali Mengi was a bad neighbour. Mali Mengi paid the Sh.100,000 during his lifetime to his sister Dada to establish her business. Required: (a) A statement showing the distribution of Mali Mengi's estate on 1 May 2020. (b) A list of legacies to which the executors should not assent, briefly give reasons for the decision. Mali Mengi (aged 57) died in a road accident on 31 December 2019. On 1 May 2020 after his executors had paid all debts, (except for the mortgage on his freehold house and debt to Mkopeshaji) testamentary and funeral expenses, his estate was ascertained as follows: Sh.'000' Cash in bank accounts Freehold house Toyota corolla Nissan sunny Television and music system Debt due from Pungulu Furniture and personal effects 10,000 ordinary shares in Cement Ltd. 4,500 ordinary shares in Soko Mjinga Ltd. Sh.800,000 10% Kenya stock Income received to date Less: Mortgage interest paid 31 March 2020 1. 2. Extracts from Mali Mengi's will left bequests as follows: 3. 4. ܘ ܣ ܐ ܩ ܩ 7. J Interest Dividend from Soko Mjinga Limited 9. 10. 11. 12. 13. 14. 15. 16. 8. To my driver Ndeleva Sh.150,000 230 37 267 120 To my friend, Mlungu Sh. 100,000. To some of my sisters-in-law Sh.300,000. To my cousin, Nipa, my painting of the Mausoleum by Kikuvu. Sh.'000' 4,250 3,250 360 220 105 40 302 1,200 370 165 147 To each of my sons, Kikwajuni, Mnazini and Mwembeni Sh.1 million. To my wife Darajani, I leave my furniture, household and personal effects and the residue of my estate. To my daughter Nyanjale, my freehold house free of all duties. The house was subject to a mortgage of Sh.1 million earning interest at 24% per annum payable 31 March and 30 September. Duty on the house amounts to Sh.130,000. To my friend Kisitu, one of the motor cars owned by me at the time of my death he may choose. 10,409 To my friend Shimba, my holding of Sh.800,000 110%; Shimba sh.100,000. To my sister Malindi, Sh.300,000. To my personal assistant, Sijapata, half of my holdings in Cement Ltd. To my niece Sinani, 4,000 ordinary shares from my holding of such shares in Cement Ltd. To my nephew Shaibu Sh.200,000 payable out of my shares in Cement Ltd. To my friend Mlungu Sh.50,000 To my neighbor Jirani, Sh. 50,000. To my sister Dada, Sh.100,000 to establish a business. stock. Mali Mengi owed Mali Mengi's executors ascertained that the following beneficiaries were dead: a. Son Mnazini, died in 2017 leaving a wife and two children b. Son Mwembeni, died 2018 leaving a wife. c. Sister Malindi, died in 2016 leaving two daughters. d. Driver, Ndeleva aged 60 died in the same accident as Mali Mengi. It was impossible to determine the order in which Mali Mengi and Ndeleva died. The executors also advise you that: (i) (ii) (iii) (iv) (v) Kisitu chose the Toyota Corolla. Mali Mengi sold his painting of the mausoleum, using the proceeds to purchase his holdings in Soko Mjinga Ltd. There is no such investment as 110% Kenya Stock. The reference in the will to 110% is thought to be a typing error not previously noticed. Jirani replied in writing that he did not want anything from Mali Mengi because Mali Mengi was a bad neighbour. Mali Mengi paid the Sh.100,000 during his lifetime to his sister Dada to establish her business. Required: (a) A statement showing the distribution of Mali Mengi's estate on 1 May 2020. (b) A list of legacies to which the executors should not assent, briefly give reasons for the decision.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Account Titles cash in bank ordinary share capital share premium-ordinary preference share share premium-ps ppe-building ppe-land mortgage payable ppe-office furnitures & Notes Payable Smallspoon...
-
The simple beam AB is subjected to a uniform distribution load as shown in the figure. Draw a shear force plot and find the position and value at which the shear force magnitude is maximized. A W L B
-
example given below Tasks: 1. Using the residual income model, prepare a valuation of the common stock of Best Buy as of Year 2 under the following assumptions (use Exhibit 9.6 in the textbook as an...
-
A reaction for which H = + 98.8 kJ and S = + 141.5 J/K is ________ (spontaneous or nonspontaneous) at low temperatures and ________ (spontaneous or nonspontaneous) at high temperatures.
-
What happens to the value of the growth option if the variance of the projects return is 14.2 percent? What if it is 50 percent? How might this explain the high valuations of many dot.com companies?...
-
Refer to the figure and find the volume generated by rotating the given region about the specified line. R 2 about OC y B(1, 1) C(0, 1) R2 y= Vr R3 Rr A(1, 0)
-
Which of the following is not one of the categories in Standards of Ethical Conduct for Management Accountants? (a) Confidentiality. (b) Competence. (c) Integrity. (d) Independence.
-
Company P purchases an 80% interest in Company S on January 1, 2011, for $480,000. Company S had equity of $450,000 on that date. Any excess of cost over book value was attributed to equipment with a...
-
Procter & Gamble Co. invested $3 billion in a sustainability initiative aimed at reducing its environmental footprint. The company provided the following financial information: Investment in...
-
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique?s demand curve, marginal revenue curve (MR), marginal cost curve...
-
I need typed solution with explanation. Why do companies decentralize? What are the advantages of decentralization? What are the disadvantages of decentralization? What are the advantages of...
-
You are currently 40 years old and intend to retire at age 60. To make your retirement easier, you intend to start a retirement account. At the beginning of each of years, you will deposit some money...
-
Bryant Company reports net income of $22,200. For the year, depreciation expense is $9,200 and the company reports a gain of $5,200 from sale of machinery. It also had a $4,200 loss from retirement...
-
Regarding the diagnostic/ analytic models appropriate for analyzing the data, either an individual-level diagnostic model or an organization-level diagnostic model would work. Briefly explain how...
-
During October, Rover Industries produced 35,300 units of product with costs as follows: Direct materials$85,500 Direct labor43,750 Variable overhead14,500 Fixed overhead150,000 Total: $293,750 What...
-
(16 points) The stock of Line of Duty (LoD), of which you own 645 shares, will pay a 3-per-share dividend one year from today. Two years from now, LoD will close its doors; stockholders will receive...
-
Exercise 17-18 Step-Down Method of Service Department Cost Allocation; Bank (LO 17-1) Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing...
-
Find the market equilibrium point for the following demand and supply functions. Demand: 2p = - q + 56 Supply: 3p - q = 34
-
While preparing Massie Miller's 2012 Schedule A, you review the following list of possible charitable deductions provided by Massie: Cash contribution to a family whose house burned...
-
Jenny earns $34,500 in 2012. Calculate the FICA tax that must be paid by: Jenny: ..............................Soc,Sec. ..................$______________...
-
Please answer the following questions regarding the taxability of Social Security: a. A 68-year-old taxpayer has $20,000 in Social Security income and $100,000 in tax-free municipal bond income. Does...
-
What is the taxable Social Security amount for Frank Schilling?
-
What is the amount of the credit to Social Security tax payable-OASDI?
-
What is the net income for the current month?
Study smarter with the SolutionInn App