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Monty loaned his friend Ned $30,000 three years ago, Ned signed a note and made payments on the loan. Last year, when the remaining balance was $24,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $24,000 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $9,600 and taxabie income of $43,750. During the current year, Ned paid Monty $21,600 in satisfaction of the debt. Determine Monty's tax treatment for the $21,600 received in the current year. The nonbusiness bad debt of $24,000 would have been reported as a and 5 would be included in Monty's gross income this year. 2022 Tax Rate Schedules