Internal Revenue Service
Revenue Ruling
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smThe following Department Store Inventory Price Indexes for April 2000 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, April 30, 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, foods, 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 Apr. Aug. Apr. 1999 to Groups 1999 2000 Aug. 2000 fn1 _____________________________________________________________________ 1. Piece Goods 553.1 516.8 -6.6 2. Domestics and Draperies 633.8 631.1 -0.4 3. Women's and Children's Shoes 669.4 646.0 -3.5 4. Men's Shoes 894.6 919.2 2.7 5. Infants' Wear 617.2 642.5 4.1 6. Women's Underwear 576.0 576.2 0.0 7. Women's Hosiery 21.9 334.2 3.8 8. Women's and Girls' Accessories 568.9 553.3 -2.7 9. Women's Outerwear and Girls' Wear 415.5 413.3 -0.5 10. Men's Clothing 629.3 615.3 -2.2 11. Men's Furnishings 629.2 631.7 0.4 12. Boys' Clothing and Furnishings 495.7 497.5 0.4 13. Jewelry 984.0 971.9 -1.2 14. Notions 778.7 757.6 -2.7 15. Toilet Articles and Drugs 956.1 971.5 1.6 16. Furniture and Bedding 699.4 680.8 -2.7 17. Floor Coverings 602.8 607.4 0.8 18. Housewares 802.1 782.1 -2.5 19. Major Appliances 232.8 234.8 0.9 20. Radio and Television 67.5 60.0 -11.1 21. Recreation and Education fn2 99.4 94.9 -4.5 22. Home Improvements fn2 128.1 128.0 -0.1 23. Auto Accessories fn2 106.8 106.5 -0.3 Groups 1 - 15: Soft Goods 612.3 610.5 -0.3 Groups 16 - 20: Durable Goods 454.4 440.3 -3.1 Groups 21 - 23: Misc. Goods fn2 104.7 101.5 -3.1 Store Total fn3 553.5 547.0 -1.2 _____________________________________________________________________ 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, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.
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. Farley on (202) 622-4970 (not a toll-free call).