Please explain answer in detail as to how to work out answer.....

1. Charles and Camilla are getting divorced.Under the terms of the decree Charles will pay Camilla $50,000in cash in each of the next five years (or until Camilla's death or remarriage). In addition,Charles will transfera castle worth $2,000,000 to Camilla and pay $12,000 per year to support their son, Clyde, until he turns 19 years old. What amount (if any) is included in Camilla's gross income this year?

A. $2,062,000 B. $12,000

C. $50,000

D. $2,050,000

E. None of the payments are included in gross income