REVENUE RULE 90-14

1990-1 C.B. 112, 1990-6 I.R.B. 12.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 5, 1990

Section 1.472-1: Last-in, First-out Inventories. 26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. The November 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, November 30, 1989.

The following price indexes for November 1989 were issued by the Bureau of Labor Statistics on December 21, 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, November 30, 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)

Groups November 1988/November 1989/Percent Change from Nov. 1988 to Nov. 1989 [Fn1]
1. Piece Goods 417.0 415.9 -0.3
2. Domestics and Draperies 595.9 603.0 1.2
3. Women's and Children's Shoes 590.5 596.2 1.0
4. Men's Shoes 828.2 839.3 1.3
5. Infants' Wear 558.4 565.7 1.3
6. Women's Underwear 476.2 481.8 1.2
7. Women's Hosiery 243.8 249.0 2.1
8. Women's and Girls' Accessories 504.1 536.5 6.4
9. Women's Outerwear and Girls' Wear 401.0 401.9 0.2
10. Men's Clothing 541.4 561.4 3.7
11. Men's Furnishings 528.8 544.6 3.0
12. Boys' Clothing and Furnishings 473.7 466.9 -1.4
13. Jewelry 780.1 820.1 5.1
14. Notions 511.3 541.3 5.9
15. Toilet Articles and Drugs 718.3 748.2 4.2
16. Furniture and Bedding 591.2 580.0 -1.9
17. Floor Coverings 500.7 512.4 2.3
18. Housewares 734.5 736.3 0.2
19. Major Appliances 251.6 246.9 -1.9
20. Radio and Television 93.8 93.2 -0.6
21. Recreation and Education [fn2] 107.9 109.2 1.2
22. Home Improvements [fn2] 105.1 111.3 5.9
23. Auto Accessories [fn2] 102.9 105.3 2.3
Groups 1 - 15: Soft Goods 536.4 547.1 2.0
Groups 16 - 20: Durable Goods 454.2 451.7 -0.6
Groups 21 - 23: Misc. Goods [fn2] 106.4 108.7 2.2
Store Total [fn3] 508.5 515.8 1.4

FN1. Absence of a minus sign before percentage change in this column signifies price increase.
FN2. Indexes of a January 1986 = 100 base

DRAFTING INFORMATION

The principal author of this revenue ruling is Eliot L. Kaplan of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Kaplan on (202) 343-2383 (not a toll-free call).

Rev. Rul. 90-14, 1990-1 C.B. 112, 1990-6 I.R.B. 12.