Problem 7-33 (Algorithmic) (LO. 1) Monty loaned his friend Ned $23,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $19,550, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $19,550 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $7,820 and taxable income of $50,750. During the current year, Ned paid Monty $17,595 in satisfaction of the debt. Determine Monty's tax treatment for the $17,595 received in the current year. The nonbusiness bad debt of $19,550 would have been reported as a short-term capital loss and $ would be included in Monty's gross income this year