Tate retires from the partnership of Roberts, Smith, and Tate. The partners share profits and losses in the ratio of \(4: 3: 3\). Tate's capital balance is \(\$ 40,000\), and he receives \(\$ 47,000\) in final settlement. What is the effect on the capital accounts of Roberts and Smith?

a. Smith's capital decreases by \(\$ 7,000\).

b. Roberts' capital decreases by \(\$ 7,000\).

c. Roberts' capital increases by \(\$ 4,000\).

d. Roberts' capital decreases by \(\$ 4,000\).