IRS Revenue Ruling
1997-32

Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The June 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
for valuing inventories for tax years ended on, or with reference to, June
30, 1997.


REV. RUL. 97-32

The following Department Store Inventory Price Indexes for June 1997
were issued by the Bureau of Labor Statistics on July 16, 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, June 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.


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).


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

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

Percent
Change from
June June June 1996 to
Groups 1996 1997 June 1997 <1>
------ ---- ---- -------------
1. Piece Goods 551.1 541.0 - 1.8
2. Domestics and Draperies 641.0 644.1 0.5
3. Women's and Children's Shoes 649.3 651.0 0.3
4. Men's Shoes 895.4 904.0 1.0
5. Infants' Wear 627.1 642.5 2.5
6. Women's Underwear 535.4 539.3 0.7
7. Women's Hosiery 288.0 295.7 2.7
8. Women's and Girls' Accessories 545.5 569.4 4.4
9. Women's Outerwear and Girls' Wear 401.1 415.3 3.5
10. Men's Clothing 612.2 625.0 2.1
11. Men's Furnishings 584.5 589.8 0.9
12. Boys' Clothing and Furnishings 485.7 494.5 1.8
13. Jewelry 1011.5 1002.1 -0.9
14. Notions 774.1 752.1 -2.8
15. Toilet Articles and Drugs 877.8 913.5 4.1
16. Furniture and Bedding 673.6 673.2 -0.1
17. Floor Coverings 576.4 592.4 2.8
18. Housewares 808.7 808.1 -0.1
19. Major Appliances 245.5 243.5 -0.8
20. Radio and Television 79.3 76.2 -3.9
21. Recreation and Education <2> 112.8 109.5 -2.9
22. Home Improvements <2> 127.4 132.8 4.2
23. Auto Accessories <2> 107.5 108.0 0.5

Groups 1 - 15: Soft Goods 592.4 602.5 1.7
Groups 16 - 20: Durable Goods 469.7 465.9 -0.8
Groups 21 - 23: Misc. Goods <2> 113.7 112.2 -1.3

Store Total 550.3 554.8 0.8

----------
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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