Calculator Print Item Problem 6-12 (Algorithmic) (LO. 1) Monty loaned his friend Ned $28,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $21,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $21,000 as a nonbusiness bad debt. Last year before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $8,400 and taxable income of $49,000. During the current year, Ned paid Monty $18,900 in satisfaction of the debt. Determine Monty's tax treatment for the $18,900 received in the current year. The nonbusiness bad debt of $21,000 would have been reported as al and would be included in Monty's gross income. short-term capital loss long-term capital loss ordinary loss