Sim Company exchanged an old machine with a carrying amount of $12,000 and a fair value of $8,000 for a new machine. The new machine had a list price of $56,000. Sim Company paid $43,000 cash and was offered $13,000 as a trade-in-allowance in the exchange. The new machine is recorded at $51,000 $56,000 $48,000 $55,000 on Sim Company's book. Partners A and B receive a salary allowance of $12,000 and $18,000, respectively, and share the remainder equally. If the company earned $20,000 during the period, what is the effect on A's capital? O a. $7,000 increase O b. $10,000 increase O c. $12,000 increase Od. $7,000 decrease