IRS Revenue Ruling
1997-18

 
 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The February 1997 Bureau of
Labor Statistics price indexes are accepted for use by department stores
employing the retail inventory and the last-in, first-out inventory
methods for valuing inventories for tax years ended on, or with reference
to, February 28, 1997


REV. RUL. 97-18

The following Department Store Inventory Price Indexes for February
1997 were issued by the Bureau of Labor Statistics on March 19, 1997. 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, February 28, 1997.

The Department Store Inventory Price 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
Feb. Feb. Feb. 1996 to
Groups 1996 1997 Feb. 1997 <1>
------ ---- ---- -------------
1. Piece Goods 505.1 526.4 4.2
2. Domestics and Draperies 651.2 650.4 -0.1
3. Women's and Children's Shoes 644.5 640.2 -0.7
4. Men's Shoes 895.1 897.7 0.3
5. Infants' Wear 645.3 617.7 -4.3
6. Women's Underwear 522.3 534.2 2.3
7. Women's Hosiery 289.3 296.5 2.5
8. Women's and Girls' Accessories 552.3 546.9 -1.0
9. Women's Outerwear and Girls' Wear 402.0 417.6 3.9
10. Men's Clothing 619.5 615.4 -0.7
11. Men's Furnishings 570.8 585.1 2.5
12. Boys' Clothing and Furnishings 476.6 469.9 -1.4
13. Jewelry 1003.4 1004.9 0.1
14. Notions 813.7 772.0 -5.1
15. Toilet Articles and Drugs 871.0 912.3 4.7
16. Furniture and Bedding 666.9 662.0 -0.7
17. Floor Coverings 563.4 581.2 3.2
18. Housewares 799.7 817.0 2.2
19. Major Appliances 249.2 246.1 -1.2
20. Radio and Television 79.0 78.6 -0.5
21. Recreation and Education <2> 113.6 111.1 -2.2
22. Home Improvements <2> 123.1 133.3 8.3
23. Auto Accessories <2> 107.3 107.9 0.6
Groups 1-15: Soft Goods 590.0 598.9 1.5
Groups 16-20: Durable Goods 467.3 470.0 0.6
Groups 21-23: Misc. Goods <2> 113.8 113.3 -0.4
Store Total <3> 548.3 554.2 1.1

----------
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.

<<END RULING>>
 

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