Ingrown toenail or...?

Ch

So I try to be very gentle when cutting my daughter's nails, but I noticed her toe was really gross looking today. It had some skin falling off of it and a crusty spot. Both of which came off before I took this picture. Is it an ingrown toenail? If so what can I do for it? If it isn't an ingrown toenail, what is it. Thanks in advanced!