Monty loaned his friend Ned $21,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $15,750, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $15,750 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $6,300 and taxable income of $42,000. During the current year, Ned paid Monty $14,175 in satisfaction of the debt. Determine Monty's tax treatment for the $14,175 received in the current year. The nonbusiness bad debt of $15,750 would have been reported as a short-term capital loss , and $ 0 X would be included in Monty's gross income this year