Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-404 - GROSS INCOME GENERALLY
Rule 6.26-51-404(a)(1) - Promissory Notes

Notes or other evidence of indebtedness, received as payment for goods or services or other types of income and not merely as security for such payment, constitute income to the amount of their fair market value. Such notes not bearing interest shall be discounted at the fair market rate and the discounted value recognized as income at the time of receipt. The amount of the discount of such notes is amortized and recognized as income when received by the taxpayer.