The inheritance tax is calculated as a percentage of the value of the estate that exceeds an exemption amount. The exemption amount varies by state and can range from $0 to $5.93 million in 2021 for federal estate tax purposes.
In Linda’s case, the inheritance tax is 7% of the estate worth $225,000. Therefore, the amount of money Linda will receive is calculated as follows:
$225,000 - (7% x $225,000) = $209,250
So the answer is (b) $209,250.
I hope that helps! Let me know if you have any other questions.