IRS Revenue Ruling
1997-26

Code Sec. 472

<<FULL TEXT>>

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

LIFO; price Indexes; department stores. The April 1997 Bureau of Labor
Statistics price indexes are accepted for use by department stores
employing the retail inventory and last-in, first-out inventory methods of
valuing inventories for tax years ended on, or with references to, April
30, 1997.


REV. RUL. 97-26

The following Department Store Inventory Price Indexes for April 1997
were issued by the Bus of labor Statistics on May 15, 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,
or with reference to, April 30, 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
Apr. Apr. Apr. 1996 to
Groups 1996 1997 Apr. 1997 <1>
------ ---- ---- -------------
1. Piece Goods 528.6 533.0 0.8
2. Domestics and Draperies 655.0 653.6 -0.2
3. Women's and Children's Shoes 658.2 661.3 0.5
4. Men's Shoe 899.6 904.8 0.6
5. Infants' Wear 640.9 640.6 0.0
6. Women's Underwear 538.5 546.3 1.4
7. Women's Hosiery 285.7 294.4 3.0
8. Women's and Girls' Accessories 554.9 561.0 1.1
9. Women's Outerwear and Girls' Wear 430.9 439.8 2.1
10. Men's Clothing 625.7 622.2 -0.6
11. Men's Furnishings 590.3 598.9 1.5
12. Boys' Clothing and Furnishings 491.2 498.6 1.5
13. Jewelry 1036.3 1026.2 -1.0
14. Notions 785.1 799.2 1.8
15. Toilet Articles and Drugs 883.3 912.5 3.3
16. Furniture and Bedding 672.2 667.5 -0.7
17. Floor Coverings 571.1 586.9 2.8
18. Housewares 802.9 815.9 1.6
19. Major Appliances 246.8 241.9 -2.0
20. Radio and Television 79.6 76.6 -3.8
21. Recreation and Education <2> 113.7 110.2 -3.1
22. Home Improvements <2> 125.7 131.4 4.5
23. Auto Accessories <2> 107.3 107.3 0.0

Groups 1-15: Soft Goods 608.2 614.6 1.1
Groups 16-20: Durable Goods 468.8 466.9 -0.4
Groups 21-23: Misc. Goods <2> 114.1 112.4 -1.5

Store Total <3> 560.1 562.6 0.4

----------
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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