The Ups and Downs partnership consists of two partners: Aa and Bb. The partnership agreement provides special compensation to Aa for managing the business. Aa receives a bonus of 15% of partnership income before salaries and bonuses and also receives a salary of $75,000. Remaining profits (losses) are allocated equally to Aa and Bb. During 2020, Ups and Downs had net income of $80,000 before bonus and salary allocations. As a result of these allocations, Bbs equity in the partnership will:

Question 16 options:

	increase.
	not change.
	decrease the same as Aas equity.
	decrease.