Internal Revenue Service
Revenue Ruling
TaxLinks.com
smThe May 2000 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, May 31, 2000.
The following Department Store Inventory Price Indexes for May 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, May 31, 1999.
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)
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Percent
Change from
May May May 1999 to
Groups 1999 2000 May 2000 /1/
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1. Piece Goods 547.0 501.7 -8.3
2. Domestics and Draperies 631.1 620.4 -1.7
3. Women's and Children's Shoes 658.7 642.2 -2.5
4. Men's Shoes 885.6 923.1 4.2
5. Infants' Wear 613.3 641.0 4.5
6. Women's Underwear 570.0 573.4 0.6
7. Women's Hosiery 323.1 335.1 3.7
8. Women's and Girls' Accessories 561.3 543.4 -3.2
9. Women's Outerwear and Girls'
Wear 406.4 401.5 -1.2
10. Men's Clothing 632.1 623.7 -1.3
11. Men's Furnishings 646.3 636.3 -1.5
12. Boys' Clothing and Furnishings 491.5 502.5 2.2
13. Jewelry 977.7 943.4 -3.5
14. Notions 743.6 775.9 4.3
15. Toilet Articles and Drugs 957.9 971.1 1.4
16. Furniture and Bedding 686.8 672.5 -2.1
17. Floor Coverings 602.4 608.6 1.0
18. Housewares 794.6 779.4 -1.9
19. Major Appliances 234.0 233.7 -0.1
20. Radio and Television 66.8 60.1 -10.0
21. Recreation and Education /2/ 99.3 93.9 -5.4
22. Home Improvements /2/ 128.1 128.5 0.3
23. Auto Accessories /2/ 106.8 106.5 -0.3
Groups 1 - 15: Soft Goods 609.8 604.5 -0.9
Groups 16 - 20: Durable Goods 450.8 438.3 -2.8
Groups 21 - 23: Misc. Goods /2/ 104.6 100.9 -3.5
Store Total /3/ 551.0 542.5 -1.5
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/1/ Absence of a minus sign before percentage change in this
column signifies a price increase.
/2/ Indexes on a January 1986 = 100 base.
/3/ 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).