Detroit Corporation sued Chicago Corporation for intentional damage to Detroit's goodwill. Detroit had created its goodwill through providing high-quality services to its customers. Thus no basis for the goodwill appeared on Detroit's balance sheet. The suit was settled and Detroit received $1,000,000 for the damages to its goodwill. Is the $1,000,000 taxable?
a. The $1,000,000 is taxable because Detroit has no basis in the goodwill.
b. The $1,000,000 is not taxable because Detroit did nothing to earn the money.
c. The $1,000,000 is taxable because it represents a recovery of capital.
d. The $1,000,000 is not taxable because Detroit settled the case.
e. None of the above