Rev. Rul. 88-26
1988-1 C.B. 242, 1988-16 I.R.B. 8.
Internal Revenue Service
Revenue Ruling
LIFO; PRICE INDEXES; DEPARTMENT STORES
Published: April 18, 1988
26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. The January 1988 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, January 31, 1988.
The following price indexes for January 1988 were issued by the Bureau of Labor Statistics on March 1, 1988, for use by department stores, and 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, January 31, 1988.
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
January January January 1987 to
Groups 1987 1988 January 1988 [FN1]
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1. Piece Goods .................... 406.3 405.0 -0.3
2. Domestics and Draperies ........ 550.5 570.6 3.7
3. Women's and Children's
Shoes ........................ 521.3 547.1 4.9
4. Men's Shoes .................... 741.0 775.7 4.7
5. Infants' Wear .................. 520.1 545.9 5.0
6. Women's Underwear .............. 424.7 426.7 0.5
7. Women's and Girl's Hosiery ..... 238.4 238.2 -0.1
8. Women's and Girl's
Accessories .................. 457.2 474.5 3.8
9. Women's Outerwear and
Girl's wear .................. 338.2 362.1 7.1
10. Men's Clothing ................. 476.6 493.9 3.6
11. Men's Furnishings .............. 479.6 498.1 3.9
12. Boys' Clothing and
Furnishings .................. 434.7 434.3 -0.1
13. Jewelry ........................ 702.4 745.6 6.2
14. Notions ........................ 486.7 495.0 1.7
15. Toilet Articles and Drugs ...... 670.5 691.1 3.1
16. Furniture and Bedding .......... 550.6 568.4 3.2
17. Floor coverings ................ 467.7 491.8 5.2
18. Housewares ..................... 725.2 734.6 1.3
19. Major Appliances ............... 247.9 245.1 -1.1
20. Radio and Television ........... 100.6 95.1 -5.5
21. Recreation and Education
[FN2] ........................ 100.9 103.5 2.6
22. Home Improvements [FN2] ........ 103.0 103.4 0.4
23. Auto Accessories [FN2] ......... 100.1 101.9 1.8
Groups 1-15; Soft goods ................. 479.9 500.9 4.4
Groups 16-20: Durable Goods ............. 450.3 450.0 -0.1
Groups 21-23: Misc. Goods [FN2] ......... 101.0 103.2 2.2
Store Total .................... 472.0 485.2 2.8
FN1. Absence of minus sign before percentage change in this column signifies
price increase
FN1. Indexes on a January 1986 = 100 base
DRAFTING INFORMATION
The principal author of this revenue ruling is Floyd G. Hase of the Corporation Tax Division. For further information regarding this revenue ruling contact Mr. Hase on (202) 566-4941 (not a toll-free call).
Rev. Rul. 88-26, 1988-1 C.B. 242, 1988-16 I.R.B. 8.