REVENUE RULE 90-50

Rev.Rul. 90-50, 1990-1 C.B. 116, 1990-26 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: June 25, 1990

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The March 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, March 31, 1990.

The following price indexes for March 1990 were issued by the Bureau of Labor Statistics on April 19, 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, March 31, 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 March 1989/March 1990/Percent Change from March 1989 to March 1990 [Fn1]
1. Piece Goods 425.2 454.4 6.9
2. Domestics and Draperies 608.4 614.7 1.0
3. Women's and Children's Shoes 586.2 593.6 1.3
4. Men's Shoes 822.6 854.2 3.8
5. Infants' Wear 562.9 600.3 6.6
6. Women's Underwear 471.4 478.3 1.5
7. Women's Hosiery 242.1 252.3 4.2
8. Women's and Girls' Accessories 515.1 527.9 2.5
9. Women's Outerwear and Girls' Wear 394.7 418.2 6.0
10. Men's Clothing 537.3 557.1 3.7
11. Men's Furnishings 528.5 542.1 2.6
12. Boys' Clothing and Furnishings 441.5 443.6 0.5
13. Jewelry 789.7 857.4 8.6
14. Notions 523.7 557.8 6.5
15. Toilet Articles and Drugs 730.2 754.9 3.4
16. Furniture and Bedding 574.5 592.7 3.2
17. Floor Coverings 486.8 512.1 5.2
18. Housewares 722.6 740.6 2.5
19. Major Appliances 245.2 243.3 -0.8
20. Radio and Television 93.2 92.4 -0.9
21. Recreation and Education [fn2] 107.8 111.0 3.0
22. Home Improvements [fn2] 108.4 110.4 1.8
23. Auto Accessories [fn2] 103.4 105.4 1.9
Groups 1 - 15: Soft Goods 535.3 555.6 3.8
Groups 16 - 20: Durable Goods 445.7 452.4 1.5
Groups 21 - 23: Misc. Goods [fn2] 107.0 109.8 2.6
Store Total [fn3] 506.2 521.5 3.0

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. 90-50, 1990-1 C.B. 116, 1990-26 I.R.B. 5.