Monty loaned his friend Ned $13,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $9,100, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $9,100 as a non business bad debt. Last year, Monty had capital gains of $3,640 and taxable income of $33,250. During the current year, Ned paid Monty $8,190 in satisfaction of the debt.
Determine Monty's tax treatment for the $8,190 received in the current year.
The non business bad debt of $9,100 would have been reported as a short-term capital loss, and $_______ would be included in Monty's gross income.