Monty loaned his friend Ned $29,000 three years ago, Ned signed a note and made payments on the loan. Last year, when the remaining balance was $21,750, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $21,750 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $8,700 and taxable income of $38,500. During the current year, Ned paid Monty $19,575 in satisfaction of the debt. Determine Monty's tax treatment for the $19,575 received in the current year, and would be included in The nonbusiness bad debt of $21,750 would have been reported as a Monty's gross income this year