10) Mike and Karen were divorced. Their only marital property was a personal residence 10) with a fair market value of $1.5 million and a cost of $575,000. Under the terms of the divorce agreement, Mike would receive the house and Mike would pay Karen $150,000 each year for 5 years, or until Karen's death, whichever should occur first. Mike and Karen were not living together when the payments were made by Mike. Mike paid the 750,000 to Karen over the five-year period. Mike's recognized gain from the transfer of the house to him is: A) $750,000. B) SO C) S925,000 D) $1,500,000