Pursuant to Corey's will, Emma (Corey's sister) inherits his property. Emma dies in a later tax year. The estate tax attributable to the inclusion of the property in Corey's gross estate was $300,000. The estate tax attributable to the inclusion of the property in Emma's gross estate is $400,000. Emma's credit for the tax on prior transfers is:

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Emma's credit for the tax on prior transfers is based on the amount of estate tax attributable to the property that she inherited from Corey. Since the property was included in Corey's gross estate, the estate tax attributable to the property would be $300,000. However, since Emma also included the property in her gross estate, the estate tax attributable to the property would be increased to $400,000. Therefore, Emma's credit for the tax on prior transfers would be the difference between the two, which is $100,000. The timing of Emma's death is not relevant to the calculation of her credit for the tax on prior transfers. The correct answer is D.

Pursuant to Corey's Will, Emma (Corey's Sister) Inherits His Property