Carl Slater was the sole proprietor of a high$-$volume drug store, which he owned for

$25$ years before he sold it to Statewide Drug Stores, Inc., in $2024.$ Besides the

$$800,000$ selling price for the store's tangible assets and goodwill, Slater received a

lump sum of $$60,000$ in $2024$ for his agreement not to operate a competing

enterprise within $10$ miles of the store's location, for a period of $6$ years. How will the

$$60,000$ be taxed to Slater?

As $$60,000$ ordinary income in $2024.$

As ordinary income of $$10,000$ a year for $6$ years.

As part of the gain on the sale of the store.

It is excluded since it was not for the performance of services.