At the beginning of Year 7, Paul owned a 25% interest in Associates partnership. During the year, a new partner was admitted and Paul's interest was reduced to 20%. The partnership liabilities at January 1, Year 7, were $150,000, but decreased to $100,000 at December 31, Year 7. Paul's and the other partners' capital accounts are in proportion to their respective interests. Disregarding any income, loss or drawings for Year 7, the basis of Paul's partnership interest at December 31, Year 7, compared to the basis of his interest at January 1, Year 7, was Decreased by $37,500. Increased by $20,000. Decreased by $17,500. Decreased by $5,000