I thought the answer was $13050. Is this correct?

Monty loaned his friend Ned $29,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $21,750, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $21,750 as a nonbusiness bad debt. Last year before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $8,700 and taxable income of $42,000. During the current year, Ned paid Monty $19,575 in satisfaction of the debt. Determine Monty's tax treatment for the $19,575 received in the current year.

The nonbusiness bad debt of $21,750 would have been reported as a short-term capital loss , and $ would be included in Monty's gross income this year.