Shigenori Kudo and Motomi Kudo, et al. - Page 20

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          was generally kept at home.  Nakamura advised Akiko to put her              
          money in the bank.                                                          
               Motomi knew that Akiko kept cash at home, but Motomi did not           
          know how much cash Akiko had at hand at any time.  Motomi also              
          was aware that Akiko kept money in bank accounts.  At the time of           
          trial, Motomi did not know how much cash Akiko had at home at the           
          time of her death, but Motomi believed that it was a large sum.             
               In 1955, Akiko inherited �500,000 from her grandmother.10              
          In 1959, Akiko lent that amount to her parents so that they could           
          remodel an apartment they owned in Japan.  Her parents agreed to            
          repay the loan by sending Akiko $300 per month (i.e., the rental            
          value of one room in the apartment) for the rest of their lives.            
          Yoshinori and Akiko traveled to Japan approximately twice a year,           
          and sometimes Akiko brought back money given to her by her                  
          parents.  On occasion, friends from Japan visiting the Takaos               
          brought money to them from Akiko's parents.  Akiko's father died            
          before 1988, but her mother was still alive through 1991 and                
          continued to repay the loan through that time.  Therefore, Akiko            
          received $3,600 each year in issue for the repayment of the loan            
          to her parents, and that amount is not taxable income to the                
          Takaos.                                                                     
               Kendo is a form of martial arts.  Yoshinori was active in              
          the kendo organization.  He served as president of the U.S. Kendo           
          Association and traveled around the United States to promote the            


               10  The record does not disclose the equivalent in dollars.            



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