Problem 7-33 (Algorithmic) (LO. 1) Monty loaned his friend Ned $19,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $16,150, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $16,150 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $6,460 and taxable income of $29,750. During the current year, Ned paid Monty $14,535 in satisfaction of the debt. Determine Monty's tax treatment for the $14,535 received in the current year. and $ would be included The nonbusiness bad debt of $16,150 would have been reported as a in Monty's gross income this year