No net deferred tax asset $($i$.$e$.,$ deferred tax asset net of related valuation allowance$)$ was recognized in

the financial statements by the Choku Company when a loss from discontinued operations was carried

forward for tax purposes because it was more likely than not than none of this deferred tax asset would

be realized. Choku had no temporary differences. The tax benefit of the loss carried forward reduced

current taxes payable on year $2$ continuing operations. The year $2$ income statement would include the

tax benefit from the loss brought forward in

A$.$ Cumulative effect of accounting changes

B$.$ Extraordinary gains

C$.$ Income from continuing operations

D$.$ Gain or loss from discontinued operations