IRS Revenue Ruling
2002-4

 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The November 2001 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, 2001.


REV. RUL. 2002-4

The following Department Store Inventory Price Indexes for November
2001 were issued by the Bureau of Labor Statistics. 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, 2001.

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,
food, 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. 2000 to
Groups 2000 2001 Nov. 2001 <1>
------ ---- ---- -------------
1. Piece Goods 499.6 492.1 -1.5
2. Domestics and Draperies 610.2 597.2 -2.1
3. Women's and Children's Shoes 664.0 659.0 -0.8
4. Men's Shoes 911.2 877.2 -3.7
5. Infants' Wear 648.0 641.4 -1.0
6. Women's Underwear 577.3 574.5 -0.5
7. Women's Hosiery 347.0 355.0 2.3
8. Women's and Girls' Accessories 555.4 562.2 1.2
9. Women's Outerwear and Girls' Wear 402.0 385.3 -4.2
10. Men's Clothing 598.8 582.7 -2.7
11. Men's Furnishings 639.2 625.4 -2.2
12. Boys' Clothing and Furnishings 501.3 490.1 -2.2
13. Jewelry 936.0 907.3 -3.1
14. Notions 798.0 806.5 1.1
15. Toilet Articles and Drugs 973.8 979.8 0.6
16. Furniture and Bedding 696.6 629.5 -9.6
17. Floor Coverings 625.6 627.3 0.3
18. Housewares 775.6 762.5 -1.7
19. Major Appliances 227.9 226.5 -0.6
20. Radio and Television 57.5 52.3 -9.0
21. Recreation and Education <2> 92.3 88.4 -4.2
22. Home Improvements <2> 129.2 124.2 -3.9
23. Auto Accessories <2> 107.6 110.4 2.6

Groups 1-15: Soft Goods 604.6 592.1 -2.1
Groups 16-20: Durable Goods 435.6 418.8 -3.9
Groups 21-23: Misc. Goods <2> 100.1 97.6 -2.5

Store Total <3> 541.4 528.0 -2.5

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1/ Absence of a minus sign before the percentage change in this column
signifies a 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, food, liquor, tobacco,
and contract departments.


DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Burkom at the
Office of Associate Chief Counsel (Income Tax and Accounting). For further
information regarding this revenue ruling, contact Mr. Burkom at (202)
622-7718 (not a toll-free call).

<<END RULING>>

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