Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-711 - PROPERTY FACTOR - VALUATION OF PROPERTY
Rule 1.26-51-711 - Owned Property
Property owned by the taxpayer shall be valued at its original cost. As a general rule, original cost is deemed to be the basis of the property for federal income tax purposes, prior to any federal adjustments, at the time of acquisition by the taxpayer and adjusted by subsequent capital additions or improvements thereto and partial disposition thereof, by reason of sale, exchange, abandonment, etc. However, capitalized intangible drilling and development costs shall be included in the property factor whether or not they have been expensed for either federal or state tax purposes.
If the original cost of property is unascertainable, the property is included in the factor at its fair market value as of the date of acquisition by the taxpayer.
Inventory of stock of goods shall be included in the factor in accordance with the valuation method used for federal income tax purposes.
Property acquired by gift or inheritance shall be included in the factor at its basis for determining depreciation for federal income tax purposes.