REVENUE RULE 90-39

1990-1 C.B. 115, 1990-18 I.R.B. 10.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 30, 1990

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The February 1990 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, February 28, 1990.

The following price indexes for February 1990 were issued by the Bureau of Labor Statistics on March 22, 1990, 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, February 28, 1990.

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 February 1989/February 1990/Percent Change from Feb. 1989 to Feb. 1990 [Fn1]
1. Piece Goods 418.3 459.2 9.8
2. Domestics and Draperies 607.9 614.3 1.1
3. Women's and Children's Shoes 577.4 580.4 0.5
4. Men's Shoes 831.0 841.6 1.3
5. Infants' Wear 564.5 587.8 4.1
6. Women's Underwear 470.8 472.7 0.4
7. Women's Hosiery 245.3 251.6 2.6
8. Women's and Girls' Accessories 502.3 525.4 4.6
9. Women's Outerwear and Girls' Wear 367.4 384.8 4.7
10. Men's Clothing 526.4 546.4 3.8
11. Men's Furnishings 520.4 532.0 2.2
12. Boys' Clothing and Furnishings 442.6 434.0 -1.9
13. Jewelry 790.2 843.4 6.7
14. Notions 523.6 555.6 6.1
15. Toilet Articles and Drugs 726.2 750.4 3.3
16. Furniture and Bedding 580.8 584.9 0.7
17. Floor Coverings 492.0 514.2 4.5
18. Housewares 734.0 742.8 1.2
19. Major Appliances 251.1 245.5 -2.2
20. Radio and Television 94.1 92.9 -1.3
21. Recreation and Education [fn2] 107.8 110.3 2.3
22. Home Improvements [fn2] 108.3 109.8 1.4
23. Auto Accessories [fn2] 104.4 105.8 1.3
Groups 1 - 15: Soft Goods 524.1 539.6 3.0
Groups 16 - 20: Durable Goods 452.4 453.3 0.2
Groups 21 - 23: Misc. Goods [fn2] 107.2 109.3 2.0
Store Total [fn3] 502.1 512.7 2.1

FN1. Absence of a minus sign before percentage change in this column signifies price increase.
FN2. Indexes on a January 1986 = 100 base.
FN3. The store total index covers all departments, with the following exceptions: Candy, foods, liquor, tobacco, as well as contract departments.

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. 90-39, 1990-1 C.B. 115, 1990-18 I.R.B. 10.