Edgar pays alimony to his former spouse, Frances, in the following amounts: $150,000 in year 1; $40,000 in year 2; and $20,000 in year 3. How much, if any, recaptured alimony must be added to Edgars gross income in year 3?

1. $0.

2. $32,500.

3. $112,500.

4. $150,000.