XYZ Corporation was originally formed in $2016$ as a C corporation. In $2018,$ it became an S corporation.

Which of the following accounts, on Schedule M$-2$ of its Form $1120-$S$,$ does XYZ Corporation use to track the undistributed

retained earnings that have accrued since it became an S corporation?

Accumulated adjustments account.

Shareholders' undistributed taxable income previously taxed.

Accumulated earnings and profits.

Other adjustments account