During the year, Hernando has the following transactions:
• Gain on the sale of stock held as an investment for 10 months.
• Gain on the sale of land held as an investment for 4 years.
• Gain on the sale of a houseboat owned for 2 years and used for family vacations.
• Loss on the sale of a reconditioned motorcycle owned for 3 years and used for
recreational purposes.
How should Hernando treat these transactions for income tax purposes?