4. Fox, Gre, and How are partners with average capital balances during 2016 of $120,000, $60,000, and $40,000, respectively. Partners receive 10 percent interest on their average capital balances. After deducting salaries of $30,000 to Fox and $20,000 to How, the residual profit or loss is divided equally. In 2016, the partnership sustained a $33,000 loss before interest and salaries to partners. By what amount should Fox’s capital account change?

a $7,000 increase b $11,000 decrease c $35,000 decrease d $42,000 increase