An S corporation's accumulated adjustments account, which measures the amount of earnings that may be distributed tax-free (cpa adapted)

a. Must be adjusted downward for the full amount of federal income taxes attributable to any taxable year in which the corporation was a C corporation

b. Must be adjusted upward for the full amount of federal income taxes attributable to any taxable year in which the corporation was a C corporation

c. Must be adjusted upward or downward for only the federal income taxes affected by capital gains or losses, respectively, for any taxable year in which the corporation was a C corporation

d. Is not adjusted for federal income taxes attributable to a taxable year in which the corporation was a C corporation