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Tim, a real estate investor, Ken, a dealer in securities, and Hardware, Incorporated, a retail...

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Accounting

Tim, a real estate investor, Ken, a dealer in securities, and Hardware, Incorporated, a retail lumber store, form a partnership called HKT, LP. HKT is in the home-building business. Tim
recently purchased his interest in HKT, while the other partners purchased their interests several years ago. During X3, HKT reports a $12,000 gain from the sale of a stock in a wholesale
lumber company it purchased in x1 for investment purposes. Which of the following statements best represents how their portion of the gain should be reported to the partner?
Multiple Choice
Tim-Short-term capital gain
Ken-Ordinary Income
Hardware, Incorporated-Long-term capital gain
All of the choices accurately report the gain to the partner.
None of the choices accurately report the gain to the partner.
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