Discussion Question 21-12 (LO. 11) Answer the following questions regarding a partner's capital account. a. What is a partner's capital account? A partner's capital account can be thought of as partner's ownership in the entity. A partner's capital account reflects the partner's in the partnership, and it is determined using one of several possible methods defined by the partnership. The partner's ending capital account balance is the same amount as the partner's basis. b. Select either "Yes" or "No" to indicate which of the following are included in a partner's ending capital account balance and which are not. 1. The capital account reflects contributions and distributions of cash or other property to or from the partner. 2. The capital account accumulates the partner's share of increases and decreases from operations. 3. The capital account may be adjusted for the partner's share of partnership liabilities. 4. The capital account excludes income or expense items that are otherwise tax-exempt or nondeductible