Jack loaned his friend Nill $29,000 three years ago. Nill signed a note and made payments on the loan. Last year, when the remaining balance was $26,100, Nill filed for bankruptcy and notified Jack that he would be unable to pay the balance on the loan. Jack treated the $26,100 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Jack had capital gains of $10,440 and taxable income of $35,000. During the current year, Nill paid Jack $23,490 in satisfaction of the debt. Determine Jack's tax treatment for the $23,490 received in the current year. The nonbusiness bad debt of $26,100 would have been reported as a short-term capital loss, and $_________ would be included in Jack's gross income. Please show solutions.