no deferred tax asset was recognized in the year 1 financial statements by the chaise company when a loss from discontinued segments was carried forward for tax purposes. chaise had no temporary differences. the tax benefit of the loss carried forward reduced current taxes payable on year 2 continuing operations. the year 2 financial statements would include the tax benefit from the loss brought forward in income from continuing operations. gain or loss from discontinued segments. owners' equity. cumulative effect of accounting changes.