Internal Revenue Service
Revenue Ruling
TaxLinks.com
smThe following Department Store Inventory Price Indexes for February 2000 were issued by the Bureau of Labor Statistics. The indexes 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 29, 2000.
The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups – soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
Percent
Change from
Feb. Feb. Feb. 1999 to
Groups 1999 2000 Feb. 2000 *fn1
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1. Piece Goods 496.2 502.6 1.3
2. Domestics and Draperies 643.1 611.8 -4.9
3. Women's and Children's Shoes 632.3 612.7 -3.1
4. Men's Shoes 889.8 893.0 0.4
5. Infants' Wear 619.6 648.8 4.7
6. Women's Underwear 565.8 577.0 2.0
7. Women's Hosiery 320.0 330.8 3.4
8. Women's and Girls' Accessories 549.6 542.1 -1.4
9. Women's Outerwear and Girls'
Wear 380.3 381.7 0.4
10. Men's Clothing 617.4 622.6 0.8
11. Men's Furnishings 592.2 619.2 4.6
12. Boys' Clothing and Furnishings 478.3 496.2 3.7
13. Jewelry 983.3 973.4 -1.0
14. Notions 741.9 763.6 2.9
15. Toilet Articles and Drugs 951.6 967.0 1.6
16. Furniture and Bedding 679.2 700.0 3.1
17. Floor Coverings 602.7 604.0 0.2
18. Housewares 808.2 787.3 -2.6
19. Major Appliances 233.8 233.9 0.0
20. Radio and Television 69.0 61.5 -10.9
21. Recreation and Education *fn2 100.1 94.2 -5.9
22. Home Improvements *fn2 129.8 128.1 -1.3
23. Auto Accessories *fn2 107.7 107.3 -0.4
Groups 1 - 15: Soft Goods 590.3 593.9 0.6
Groups 16 - 20: Durable Goods 455.6 444.9 -2.3
Groups 21 - 23: Misc. Goods *fn2 105.5 101.3 -4.0
Store Total *fn3 540.7 537.7 0.6
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*fn1 Absence of a minus sign before percentage change in this
column signifies a price increase.
*fn2 Indexes on a January 1986 = 100 base.
*fn3 The store total index covers all departments, including some
not listed separately, except for the following: candy, food,
liquor, tobacco, and contract departments.
The principal author of this revenue ruling is Alan J. Tomsic of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Tomsic on (202) 622-4970 (not a toll-free call).