Barney and Betty got divorced in 2018. In the divorce decree Betty agreed to transfer 65 shares of common stock worth $45,500 and pay Barney $21,400 per year for five years (or until Barney's death or remarriage). What amount (if any) is included in Barney's gross income this year?

Multiple Choice

1. $21,400.
2. $45,500.
3. $66,900.
4. $156,500.
5. None of the payments are included in gross income.