The High and Low partnership agreement provides special compensation to High for managing the business. High receives a bonus of 15% of partnership net income before salary and bonus, and also...

The High and Low partnership agreement provides special compensation to High for managing the business. High receives a bonus of 15% of partnership net income before salary and bonus, and also receives a salary of $45,000. Any remaining profit or loss is to be allocated equally. During 2019, the partnership had net income of $50,000 before the bonus and salary allowance. As a result of these distributions, Low’s equity in the partnership would

(a) Increase.

(b) Not change.

(c) Decrease the same as High’s.

(d) Decrease.