Tim, a real estate investor, Ken, a dealer in securities and Hardware, Inc. a retail lumber store, form a partnership called HKT. HKT is in the home-building business. Tim recently purchased his interest in HKR while the other partners purchased their interest several years ago. During the current year, HKT reports a $ 12,000 gain from the sale of stock in a wholesale lumber company it had purchased two years ago as an investment. Which of the following accurately represents how their portion of the gain should be reported to the partner?

Tim- Short-term Capital Gain

Ken-Ordinary Income

Hardware Inc.-Long-term Capital Gain

All of the above are correct

None of the above is correct