Orlando and Katelyn were divorced. Their only marital property was a personal residence with a value of $250,000 and cost of $100,000. Under the terms of the divorce agreement, Katelyn would receive the house and Katelyn would pay Orlando $25,000 each year for five years, or until Orlando's death, whichever should occur first. Orlando and Katelyn lived apart when the payments were made to Orlando. The divorce agreement did not contain the word "alimony." Katelyn paid the $125,000 to Orlando over the five-year period. Then, Katelyn sold the residence for $300,000. Katelyn's recognized gain is: