Rev. Rul. 87-74
1987-2 C.B. 141, 1987-32 I.R.B. 15.
Internal Revenue Service
Revenue Ruling
LIFO; PRICE INDEXES; DEPARTMENT STORES
Published: August 10, 1987
26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. The March 1987 Bureau of Labor Statistics price indexes are accepted by department stores employing the retail inventory and last-in, first-out inventories for tax years ended on, or with reference to, March 31, 1987.
The following price indexes for March 1987 were issued by the Bureau of Labor Statistics on April 28, 1987, for use by department stores, and are accepted by the Internal Revenue Service, under section 1.472-1(k) of the Income Tax Regulation and Rev. Proc. 86-46, 1986-50 I.R.B. 6, for appropriate application to inventories of department stores employing the retail inventory and last-in, first- out inventory methods for tax year ended on, or with reference to, March 31, 1987.
Indexes are prepared on a national basis for the store total, for 23 major groups of departments, and for three special combinations - soft goods, durable goods and miscellaneous goods. The store total index covers all departments, including some not listed separately with the following exceptions: candy, foods, liquor, tobacco, as well as contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100 unless otherwise noted)
Percent
Change from
March March March 1986 to
Groups 1986 1987 March 1987
[FN1]
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1. Piece Goods ........................ 404.2 402.3 -0.5
2. Domestics and Draperies ............ 558.9 565.4 1.2
3. Women's and Children's Shoes ....... 529.4 538.7 1.8
4. Men's Shoes ........................ 718.5 757.0 5.4
5. Infant's Wear ...................... 523.8 539.6 3.0
6. Women's Underwear .................. 423.3 433.0 0.2
7. Women's and Girls' Hosiery ......... 237.5 235.6 -0.8
8. Women's and Girl's Accessories ..... 450.3 463.5 2.9
9. Women's Outerwear and Girls' Wear .. 340.6 363.4 6.7
10. Men's Clothing ..................... 470.1 492.1 4.7
11. Men's Furnishings .................. 478.1 491.1 2.7
12. Boy's Clothing and Furnishings ..... 436.0 428.4 -1.7
13. Jewelry ............................ 660.7 703.4 6.5
14. Notions ............................ 472.6 471.6 -0.2
15. Toilet Articles and Drugs .......... 659.1 672.8 2.1
16. Furniture and Bedding .............. 540.9 557.9 3.1
17. Floor Coverings .................... 460.3 469.3 2.0
18. Housewares ......................... 713.5 727.5 2.0
19. Major Appliances ................... 245.7 249.4 1.5
20. Radio and Television ............... 100.8 99.6 -1.2
21. Recreation and Education [FN2] ...... 99.2 101.4 2.2
22. Home Improvements [FN2] ............. 99.3 102.5 3.2
23. Auto Accessories [FN2] .............. 99.6 100.0 0.4
Groups 1-15: Soft Goods ............ 478.4 494.6 3.4
Groups 16-20: Durable Goods ........ 445.3 451.4 1.4
Groups 21-23: Misc. Goods [FN2] ..... 99.3 101.3 2.0
Store Total ........................ 468.2 480.4 2.6
FN1. Absence of a minus sign before percentage change in this column signifies
price increase
FN2. Indexes on a January 1986 = 100 base
Rev. Rul. 87-74, 1987-2 C.B. 141, 1987-32 I.R.B. 15