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 $17,850, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $17,850 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $7,140 and taxable income of $36,750. During the current year, Ned paid Monty $16,065 in satisfaction of the debt Determine Monty's tax treatment for the $16,065 received in the current year The nonbusiness bad debt of $17,850 would have been reported as a short-term capital loss,and included in Monty's gross income x would be