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 $20,300, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $20,300 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $8,120 and taxable income of $40,250. During the current year, Ned paid Monty $18,270 in satisfaction of the debt. Determine Monty's tax treatment for the $18,270 received in the current year. and $ would be included in The nonbusiness bad debt of $20,300 would have been reported as a Monty's gross income this year