The Accounting Recognition of the Benefit from a Tax Loss

The accounting recognition of the benefit from a tax loss carryforward in most situations should be reported as

A) A reduction of the loss in the year of the loss with an appropriate valuation allowance
B) A prior period adjustment in whichever year the benefit is realized
C) As a component of income from continuing operations in the year in which the benefit is realized
D) An item on the retained earnings statement, not the income statement