Monty loaned his friend Ned $$19,000$ three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $$15,200,$ Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $$15,200$ as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $$6,080$ and taxable income of $$36,750.$ During the current year, Ned paid Monty $$13,680$ in satisfaction of the debt.

Determine Monty's tax treatment for the $$13,680$ received in the current year.

The nonbusiness bad debt of $$15,200$ would have been reported as a

short$-$term capital loss

$,$ and $fill in the blank $2$

$19,000$

would be included in Monty's gross income this year.