IRS Revenue Ruling
1997-37

 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The July 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, July
31, 1997.


REV. RUL. 97-37

The following Department Store Inventory Price Indexes for July 1997
were issued by the Bureau of Labor Statistics on August 14, 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, July 31, 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
July July July 1996 to
Groups 1996 1997 July 1997 <1>
------ ---- ---- -------------
1. Piece Goods 539.2 539.8 0.1
2. Domestics and Draperies 635.6 656.1 3.2
3. Women's and Children's Shoes 643.9 641.6 -0.4
4. Men's Shoes 888.2 902.6 1.6
5. Infants'Wear 609.3 637.9 4.7
6. Women's Underwear 536.9 543.5 1.2
7. Women's Hosiery 289.3 297.8 2.9
8. Women's and Girls' Accessories 544.7 544.5 0.0
9. Women's Outerwear and Girls' Wear 380.6 395.0 3.8
10. Men's Clothing 610.3 621.6 1.9
11. Men's Furnishings 573.0 585.9 2.3
12. Boys' Clothing and Furnishings 475.9 495.9 4.2
13. Jewelry 1016.0 1003.9 -1.2
14. Notions 779.4 797.5 2.3
15. Toilet Articles and Drugs 880.9 905.7 2.8
16. Furniture and Bedding 671.6 662.8 -1.3
17. Floor Coverings 577.5 598.2 3.6
18. Housewares 811.9 807.2 0.6
19. Major Appliances 245.8 243.1 -1.1
20. Radio and Television 79.2 75.9 -4.2
21. Recreation and Education <2> 112.7 109.8 -2.6
22. Home Improvements <2> 126.8 132.7 4.7
23. Auto Accessories <2> 107.0 108.6 1.5

Groups 1-15: Soft Goods 582.4 594.9 2.1
Groups 16-20: Durable Goods 470.3 464.2 -1.3
Groups 21-23: Misc. Goods <2> 113.5 112.5 -0.9

Store Total <3> 544.2 549.8 1.0

----------
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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