Rev. Rul. 86-26
1986-1 C.B. 583, 1986-8 I.R.B. 19.
Internal Revenue Service
Revenue Ruling
Published: February 24, 1986
Section 472.-Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in first-out inventories
LIFO; price indexes; department stores. The November 1985 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventories for tax years ended on, or with reference to, November 30, 1985.
The following price indexes for November 1985 were issued Bureau of Labor Statistics on December 23, 1985, for use by department stores, and are accepted by the Internal Revenue Service, under section 1.472-1(i) of the Income Tax Regulations and Rev. Proc. 72-21, 1972-1 C.B. 745, 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, 1985.
Indexes are prepared on a national basis for the store total, for 20 major groups of departments, and for two special combinations-soft and durable goods. The store total index covers all departments, including some not listed separately, with the following exceptions: candy, foods, liquor, tobacco, paints, and wallpaper, as well as contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100)
Percentage
Change from
November
November November 1984 to
1984 1985 November
1985
[FN1]
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I. Piece Goods ........................ 394.9 400.0 1.3
II. Domestics and
Draperies .......................... 554.7 554.6 0.0
III. Women's and
Children's Shoes ................... 557.0 558.2 0.2
IV. Men's Shoes ........................ 710.6 728.7 2.5
V. Infants' wear ...................... 481.4 505.2 4.9
VI. Women's Underwear .................. 425.4 441.0 3.7
VII. Women's and Girls' Hosiery ......... 232.4 235.7 1.2
VIII. Women's and Girls'
Accessories ........................ 445.9 445.0 2.0
IX. Women's Outerwear
and Girls' wear .................... 350.4 362.2 3.4
X. Men's Clothing ..................... 475.4 482.4 1.5
XI. Men's Furnishings .................. 475.5 492.2 3.5
XII. Boys' Clothing
and Furnishings .................... 444.5 457.3 2.9
XIII. Jewelry ............................ 689.4 670.7 -2.7
XIV. Notions ............................ 479.0 487.3 1.7
XV. Toilet Articles
and Drugs .......................... 625.0 647.6 3.6
XVI. Furniture and
Bedding ............................ 534.8 534.7 1.7
XVII. Floor Coverings .................... 455.5 458.3 0.6
XVIII. Housewares ......................... 717.0 712.5 -0.6
XIX. Major Appliances ................... 241.2 245.3 1.7
XX. Radio and Television ............... 107.7 101.0 -6.2
Groups I-XV:
Soft Goods ......................... 477.8 488.1 2.2
Groups XVI-XX:
Durable Goods ...................... 445.8 445.6 0.0
Store Total ........................ 468.5 476.2 1.6
FN1. Absence of a minus sign before percentage change in this column signifies
price increases.
Rev. Rul. 86-26, 1986-1 C.B. 583, 1986-8 I.R.B. 19.