Barney and Betty got divorced this year. In the divorce decree Betty agreed to transfer 60 shares of common stock worth $42,000 and pay Barney $19,600 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?

$19,600.

$42,000.

$61,600.

$146,000.

None of the payments are included in gross income.