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TAX3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2026 - DUE 15 September 2026

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TAX3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2026 - DUE 15 September 2026; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Ensure your success with us. TAXATION OF ESTATES TAX3703 Semester 2 2026 Department of Taxation 2 TAX3703/2026 Course Assignment number: Due date: Assessment criteria TAX September 2026 – 23h00 Learning units 1 - 8 covered in the assignment Instructions: • Please complete all questions and upload in ONE pdf document on myUnisa. • Please make sure that pages are numbered and in the correct order. Clearly indicate question numbers. • Start each question on a new (separate) page. • You are REMINDED that this is to be your own work as it reflects YOUR understanding of the module content. No group efforts. If you are part of a class or tutor group DO NOT discuss the assignment in class – do it on your own and there will be no allegations. • Refer to Tutorial letter 101, section 10 regarding academic dishonesty. • Any indication of academic misconduct will be allocated a zero for the assignment. Assumptions for answering the questions: 1. All amounts exclude VAT unless stated otherwise. 2. All persons mentioned are residents of the Republic of South Africa unless stated otherwise. 3. SARS = South African Revenue Service 4. Show all workings, where applicable. Where an amount is subject to a limitation, clearly indicate the application of the limitation. Where any item is exempt from tax or not allowable as a deduction, this must be indicated, and a brief reason provided. All amounts must be rounded to the nearest Rand. Assignment 2 3 TAX3703/2026 ASSIGNMENT 2 QUESTION 1 36 marks TOTAL 36 marks QUESTION 1 (36 marks, 43 minutes) Mr. John Khosa Ndlovu (ID ) died on 22 May 2026 at the age of 69 in Johannesburg, where he resided. Mr. Khosa was married out of community of property (with accrual) to Mrs. Thandiwe Khosa (65 years of age). He is survived by Thandiwe and two daughters, Nomvula (42 years of age) and Zanele (34 years of age). Masters reference number: 6698/2026. The following was found by the executor in the estate: 1. Primary residence, apartment in Johannesburg, with an estimated current market value of R. 2. Sundry household goods valued at R250 000. 3. Fixed deposit of R96 950 in a local bank, Sizwe Bank. The amount consists of R95 000 capital and R1 400 interest accrued prior to death and R550 accrued after death until the account was closed. 4. The executor collected proceeds of the sale of a listed investment amounting to R320 000. The listed value on the date of John's death was R375 000. 5. Antique motor vehicle, valued at R565 000. 6. Proceeds of a domestic insurance policy (on John's life) amounted to R940 000 and were paid directly to the estate. Total premiums of R110 000 together with 6% interest of R12 000 were paid by John. 7. Shares, valued at R405 000, in an unlisted company, but sold by the executor for R360 000. 8. Mortgage bond against Johannesburg property of R210 000. 9. Various outstanding local liabilities and costs of administration totalling R63 000. 10. Funeral costs amounting to R58 000. 11. Accrual claim by the surviving spouse of R. Master's fees and executor's remuneration must be provided for according to current prescribed tariffs. Assume the executor is not a registered VAT vendor. Additional information: John had a valid will which had the following bequests: ● To my spouse, Thandiwe a cash legacy of R. ● To each of my daughters a cash legacy of R500 000, (R in total); and ● The residue of the estate to my best friend, Mr Bongani Khumalo. However, to give effect to these bequests, some of the assets would need to be sold to ensure there was enough cash in the estate to pay out the cash amounts to the legacies in terms of the will. To avoid this, Thandiwe will take over the Johannesburg home and sundry household goods in terms of section 38 of the Administration of Estates Act takeover. She paid in R500 000 cash from her own funds so that her daughters would still be able to receive their inheritance in terms of John's will. Assignment 2 4 TAX3703/2026 QUESTION 1 (continued) REQUIRED: MARKS 36 Compile the complete executor's account for Mr. John Khosa's deceased estate to be lodged with the Master of the High Court. Note: You may ignore the Fiduciary asset account. END OF ASSIGNMENT 2 Assignment 2

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TAX3703
Assignment 2 Semester 2 2026
Unique number:
Due date: 15 September 2026


QUESTION 1
FIRST AND FINAL LIQUIDATION AND DISTRIBUTION ACCOUNT
IN THE ESTATE OF THE LATE MR JOHN KHOSA NDLOVU, IDENTITY NUMBER NOT
PROVIDED, WHO RESIDED IN JOHANNESBURG AND DIED ON 22 MAY 2026. MARRIED
OUT OF COMMUNITY OF PROPERTY TO MRS THANDIWE KHOSA, WITH THE ACCRUAL
SYSTEM APPLICABLE. MASTER'S REFERENCE NUMBER 6698/2026.

Liquidation account

Voucher
Particulars Amount
no.
ASSETS Voucher R

Immovable property – not reduced to cash 2 750 000

Primary residence, apartment in Johannesburg, at market value.
Taken over by the surviving spouse, Thandiwe Khosa, together with
1 2 750 000
the household goods, in terms of section 38 of the Administration of
Estates Act.

Movable property – not reduced to cash 815 000

, QUESTION 1
FIRST AND FINAL LIQUIDATION AND DISTRIBUTION ACCOUNT
IN THE ESTATE OF THE LATE MR JOHN KHOSA NDLOVU, IDENTITY NUMBER NOT
PROVIDED, WHO RESIDED IN JOHANNESBURG AND DIED ON 22 MAY 2026. MARRIED
OUT OF COMMUNITY OF PROPERTY TO MRS THANDIWE KHOSA, WITH THE ACCRUAL
SYSTEM APPLICABLE. MASTER'S REFERENCE NUMBER 6698/2026.

Liquidation account

Voucher
Particulars Amount
no.
ASSETS Voucher R

Immovable property – not reduced to cash 2 750 000

Primary residence, apartment in Johannesburg, at market value. Taken
over by the surviving spouse, Thandiwe Khosa, together with the
1 2 750 000
household goods, in terms of section 38 of the Administration of Estates
Act.

Movable property – not reduced to cash 815 000

Sundry household goods, at valuation. Taken over by Thandiwe Khosa in
2 250 000
terms of section 38.

Antique motor vehicle, at valuation. This asset forms part of the residue
5 565 000
and is transferred in specie to Mr Bongani Khumalo.

Claims in favour of the estate – reduced to cash 1 716 400

Proceeds of fixed deposit at Sizwe Bank: capital R95 000 plus interest
accrued before death R1 400. Post-death interest of R550 is shown in the 3 96 400
income and expenditure account.

Proceeds from sale by the executor of the listed investment. The asset is
4 320 000
reflected at the actual selling price.

Proceeds of domestic insurance policy on John's life, paid directly to the
6 940 000
estate.

Proceeds from sale by the executor of shares in the unlisted company. The
7 360 000
liquidation account reflects the actual selling price.

TOTAL ASSETS 5 281 400



Voucher
Particulars Amount
no.
LIABILITIES Voucher R

Claims against the estate 651 000

Mortgage bond against the Johannesburg property. 8 210 000

Connected book
 image
J. M. O\'Callaghan Taxation of Estates
Publisher: 1993 ISBN: 9781854756213 Edition: Unknown

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