what is the answer to this?

4. Larry was the holder of a patent on a video game. During 2022, he licensed TECHCO INC giving TECHCO the right to make, use and sell using the patent. He is to receives for a 5% royalty on the first $10,000,000 of sales each year related to the product in which the patent is used Any sales above $10 million require TECHCO to pay a 2% royalty. The non-exclusive license is to last 10 years. Larry is working with another potential licensee now, during 2023, and hopes to close the deal soon. Larry had not reduced the patent to practice. He had a $50,000 basis for the patent. During 2022 , he received $800,000 in royalties. What is the nature (ordinary income?; capital gain?; other?) and amount of Larry's income subject to tax that is associated with this patent