IRS Revenue Ruling
1997-6

Code Sec. 472

<<FULL TEXT>>

26 CFR 1.472-1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The November 1996 Bureau of
Labor Statistics price indexes are accepted for use by department stores
employing the retail inventory and last-in, first-out inventory methods
for valuing inventories for tax years ended on, or with reference to,
November 30, 1996.


REV. RUL. 97-6

The following Department Store Inventory Price Indexes for November
1996 were issued by the Bureau of Labor Statistics on December 12, 1996.
The indexes are accepted by the Internal Revenue Service, under section
1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B.
739, for appropriate application to inventories of department stores
employing the retail inventory and last-in, first-out inventory methods
for tax years ended on, or with reference to, November 30, 1996.

The Department Store Inventory Price 4 Indexes are prepared on a
national basis and include (a) 23 major groups of departments, (b) three
special combinations of the major groups - soft goods, durable goods, and
miscellaneous goods, and (c) a store total, which covers all departments,
including some not listed separately, except for the following: candy,
foods, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT
STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 - 100,
unless otherwise noted)
-----------------------

Percent
Change from
Nov. Nov. Nov. 1995 to
Groups 1995 1996 Nov. 1996 <1>
------ ---- ---- -------------
1. Piece Goods 509.3 555.9 9.1
2. Domestics and Draperies 632.0 634.7 0.4
3. Women's and Children's Shoes 637.8 656.1 2.9
4. Men's Shoes 921.8 903.7 -2.0
5. Infants' Wear 636.8 614.8 -3.5
6. Women's Underwear 527.8 535.4 1.4
7. Women's Hosiery 288.2 287.4 -0.3
8. Women's and Girls' Accessories 559.8 562.5 0.5
9. Women's Outerwear and Girls' Wear 419.3 415.9 -0.8
10. Men's Clothing 623.7 633.0 1.5
11. Men's Furnishings 572.7 591.5 3.3
12. Boys' Clothing and Furnishings 485.5 495.1 2.0
13. Jewelry 1001.1 1020.6 1.9
14. Notions 776.6 740.7 -4.6
15. Toilet Articles and Drugs 875.3 903.4 3.2
16. Furniture and Bedding 661.2 667.8 1.0
17. Floor Coverings 555.4 585.6 5.4
18. Housewares 790.5 804.5 1.8
19. Major Appliances 248.7 244.2 -1.8
20. Radio and Television 79.9 78.1 -2.3
21. Recreation and Education <2> 113.4 111.3 -1.9
22. Home Improvements <2> 121.9 130.6 7.1
23. Auto Accessories <2> 107.0 107.1 0.1

Groups 1 - 15: Soft Goods 595.2 602.1 1.2
Groups 16 - 20: Durable Goods 465.0 466.5 0.3
Groups 21 - 23: Misc. Goods <2> 113.5 113.0 -0.4

Store Total <3> 550.7 555.1 0.8

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1/ Absence of a minus sign before percentage change in this column
signifies price increase.
2/ Indexes on a January 1986=100 base.
3/ The store total index covers all departments, including some not
listed separately, except for the following: candy, foods, liquor,
tobacco, and contract departments.


DRAFTING INFORMATION

The principal author of this revenue ruling is Stan Michaels of the
Office of Assistant Chief Counsel (Income Tax and Accounting). For further
information regarding this revenue ruling, contact Mr. Michaels on (202)
622-4970 (not a toll-free call).

<<END RULING>>

 

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