Starting in 2018, Mr. West must pay his former spouse $20,000 annually under a divorce decree in the following amounts: - $10,000 for payment in arrears - $10,000 a year cash payment to former Mrs. West until she dies - In addition to the above amounts, the former Mrs. West also received in 2020 a lump-sum amount of $150,000 from the sale of their other marital assets. Assume the parties did not file a joint return and were not members of the same household. Also, assume that there were no written statements between the parties as to how the amounts should be treated. What amount must the payee in 2020 include in gross income?

Select one:

a.

$20,000

b.

$155,000

c.

$10,000

d.

$175,000