Question Content AreaHiram is a computer engineer and, while unemployed, invents a switching device for computer networks. He patents the device but does not reduce it to practice. Hiram has a zero tax basis for the patent. In consideration of $$800,000$ plus a $$1$ royalty per device sold, Hiram assigns the patent to a computer manufacturing company. He assigns all substantial rights in the patent. Which of the following is correct?

a$.$ Hiram automatically has long$-$term capital gain from the lump$-$sum payment, but not from the royalty payments.

b$.$ Hiram automatically has long$-$term capital gain from the royalty payments but not from the lump$-$sum payment.

c$.$ Hiram automatically has long$-$term capital gain from both the lump$-$sum payment and the royalty payments.

d$.$ Hiram does not have automatic long$-$term capital gain from either the lump$-$sum payment or the royalty payments.