REVENUE RULE 90-58

1990-2 C.B. 105, 1990-29 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO: PRICE INDEXES; DEPARTMENT STORES

Published: July 16, 1990

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO: price indexes; department stores. The April 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, April 30, 1990.

The following price indexes for April 1990 were issued by the Bureau of Labor Statistics on May 18, 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, April 30, 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 April 1989/April 1990/Percent Change from April 1989 to April 1990 [Fn1]
1. Piece Goods 432.8 457.1 5.6
2. Domestics and Draperies 610.9 607.7 -0.5
3. Women's and Children's Shoes 593.6 604.8 1.9
4. Men's Shoes 823.7 860.8 4.5
5. Infants' Wear 582.1 608.2 4.5
6. Women's Underwear 474.3 482.6 1.7
7. Women's Hosiery 241.7 252.7 4.6
8. Women's and Girls' Accessories 526.5 532.2 1.1
9. Women's Outerwear and Girls' Wear 403.5 422.8 4.8
10. Men's Clothing 543.4 564.4 3.9
11. Men's Furnishings 531.4 549.4 3.4
12. Boys' Clothing and Furnishings 448.9 451.7 0.6
13. Jewelry 795.1 865.0 8.8
14. Notions 524.1 550.0 4.9
15. Toilet Articles and Drugs 732.8 764.2 4.3
16. Furniture and Bedding 577.4 595.7 3.2
17. Floor Coverings 486.2 513.1 5.5
18. Housewares 724.6 743.5 2.6
19. Major Appliances 244.0 244.8 0.3
20. Radio and Television 93.0 92.1 -1.0
21. Recreation and Education [fn2] 107.8 111.3 3.2
22. Home Improvements [fn2] 109.1 109.6 0.5
23. Auto Accessories [fn2] 103.7 105.4 1.6
Groups 1 - 15: Soft Goods 541.7 560.6 3.5
Groups 16 - 20: Durable Goods 446.0 453.7 1.7
Groups 21 - 23: Misc. Goods [fn2] 107.2 109.8 2.4
Store Total [fn3] 509.9 524.6 2.9

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. 90-58, 1990-2 C.B. 105, 1990-29 I.R.B. 4.