Partners Randy and Mary each have $3,000 capital balances and share income and losses in a 2:1 ratio for Randy and Mary, respectively. Cash equals $5,000, noncash assets total $13,000, and liabilities are $5,000. If all the noncash assets are sold for $10,000, Mary's capital account will: (Round your answer to the nearest dollar.)

A) increase by $5,333.
B) decrease by $1,000.
C) decrease by $2,000.
D) increase by $2,667.

CFirst, calculate the total capital after selling the noncash assets. Cash after sale = $5,000 + $10,000 (from sale) = $15,000. Subtract liabilities of $5,000, leaving $10,000 to be divided among the partners according to their capital and profit-sharing ratios.The loss from selling the noncash assets = $13,000 (book value) - $10,000 (sale price) = $3,000 loss.Randy's share of the loss = 2/3 of $3,000 = $2,000.Mary's share of the loss = 1/3 of $3,000 = $1,000.Therefore, Mary's capital account decreases by $1,000, and since the loss is shared, Randy's capital also decreases, indicating a decrease in capital accounts due to the loss on sale of assets.