Monty loaned his friend Ned $20,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $11,000, Ned filed for bankruptcy and was unable to repay the loan Monty treated $11,000 as a nonbusiness bad debt. Monty had capital gains of $9,000 and taxable income of $45,000. During the current rent year, Ned paid Monty $10,000 in satisfaction of the debt.

Determine Monty's tax treatment for the $10,000 received in the current year.