Ark. Code R. 26-51-404 - 11(a)(1) (1997) - Annuities and Endowment Contracts

When property is acquired and later sold for an amount in excess of the cost or other basis, the gain on the sale is income. When a taxpayer sells its capital assets in whole or in part, it shall include in its gross income for the tax year in which the sale was made the gain from such sale computed as provided in ACA26-51-411 through ACA26-51-413. If the purchaser takes possession of the assets and assumes the liability, then the amount so assumed is part of the selling price.