Exercise $7-21($Algorithmic$)($LO$.1)$

Last year, Aleshia identified $$8,000$ as a nonbusiness bad debt. In that tax year, before considering the tax implications of the nonbusiness bad debt, Aleshia had $$16,000$ of taxable income, of which $$5,600$ consisted of short$-$term capital gains. This year, Aleshia collected $$6,720$ of the amount she had previously identified as a bad debt.

Determine Aleshia's tax treatment of the $$6,720$ received in the current tax year.

Aleshia includes $ $$ of the collection as $$