Final answer:
In a corporation, the Retained Earnings account replaces the owner's Capital account from a sole proprietorship, reflecting the reinvested profits within the company.
Step-by-step explanation:
The account in a corporation that replaces the owner's Capital account in a sole proprietorship is Retained Earnings. Unlike in a sole proprietorship, where the profits are directly attributed to the owner's Capital account, in a corporation, after profits are calculated, they are retained within the corporation as Retained Earnings. This account represents the cumulative profits that have been reinvested in the corporation rather than distributed to shareholders as dividends. Common Stock represents the shares of ownership in the corporation and is distinct from Retained Earnings, which deals with profits and reinvestments. Additionally, Owner's Equity is a more generic term relating to an individual's stake in a company, but isn't specifically the account that replaces a sole proprietorship's Capital account.