Monty loaned his friend Ned $24,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $21,600, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $21,600 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $8,640 and taxable income of $42,000. During the current year, Ned paid Monty $19,440 in satisfaction of the debt. Determine Monty's tax treatment for the $19,440 received in the current year. and $ would The nonbusiness bad debt of $21,600 would have been reported as a be included in Monty's gross income this year