Rev. Rul. 89-83
1989-1 C.B. 166, 1989-26 I.R.B. 16.
Internal Revenue Service
Revenue Ruling
LIFO; PRICE INDEXES; DEPARTMENT STORES
Published: June 26, 1989
Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1; Last-in, first- out inventories.
LIFO; price indexes; department stores. The March 1989 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 March 31, 1989.
The following price indexes for March 1989 were issued by the Bureau of Labor Statistics on April 20, 1989, 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 March 31, 1989.
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 1988 to
Groups 1988 1989 March 1989 [FN1]
___________________________________________________________________
1. Piece Goods 409.7 452.2 3.8
2. Domestics and Draperies 594.7 608.4 2.3
3. Women's and Children's Shoes 554.3 586.2 5.8
4. Men's Shoes 782.7 822.6 5.1
5. Infants' Wear 545.6 562.9 3.2
6. Women's Underwear 446.7 471.4 5.5
7. Women's Hosiery [FN2] 242.4 242.1 -0.1
8. Women's and Girls' Accessories 486.0 515.1 6.0
9. Women's Outerwear and Girls'
Wear 387.4 394.7 1.9
10. Men's Clothing 509.1 537.3 5.5
11. Men's Furnishings 508.9 528.5 3.9
12. Boys' Clothing and Furnishings 437.1 441.5 1.0
13. Jewelry 756.2 789.7 4.4
14. Notions 495.0 523.7 5.8
15. Toilet Articles and Drugs 696.5 730.2 4.8
16. Furniture and Bedding 576.9 574.5 -0.4
17. Floor Coverings 495.8 486.8 -1.8
18. Housewares 732.0 722.6 -1.3
19. Major Appliances 243.5 245.2 0.7
20. Radio and Television 95.6 93.2 -2.5
21. Recreation and Education [FN3] 104.4 107.8 3.3
22. Home Improvements [FN3] 103.2 108.4 5.0
23. Auto Accessories [FN3] 102.0 103.4 1.4
Groups 1 - 15: Soft Goods 517.0 535.3 3.5
Groups 16 - 20: Durable Goods 450.6 445.7 -1.1
Groups 21 - 23: Misc. Goods [FN3] 103.7 107.0 3.2
Store Total 494.6 506.2 2.3
FN1. Absence of a minus sign before percentage change in this column signifies price increase.
FN2. Title reflects change in item sampling structure made during 1978 CPI Revision whereby Girls' Hosiery was included in Group 8. Women's and Girl's Accessories, not Group 7.
FN3. Indexes on a January 1986 = 100 base.
DRAFTING INFORMATION
The principal author of this revenue ruling is Kevin M. Curran of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Curran on (202) 566-3024 (not a toll-free call).
Rev. Rul. 89-83, 1989-1 C.B. 166, 1989-26 I.R.B. 16.