During the past tax year, Jane identified $50,000 as a non-business bad debt. In that tax year,

Question:

During the past tax year, Jane identified $50,000 as a non-business bad debt. In that tax year, Jane had $100,000 of taxable income, of which $5,000 consisted of short term capital gains. During the current tax year, Jane collected $10,000 of the amount she had previously identified as a bad debt. Discuss Jane's tax treatment of the $10,000 received in the current tax year?