Internal Revenue Service
Revenue Ruling
TaxLinks.com
smThe June 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, June 30, 2000.
Code Sec. 472;
The following Department Store Inventory Price Indexes for June 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, June 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, 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
June June June 1999 to
Groups 1999 2000 June 2000 /1/
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1. Piece Goods 555.1 496.1 -10.6
2. Domestics and Draperies 630.1 615.8 -2.3
3. Women's and Children's Shoes 645.1 626.5 -2.9
4. Men's Shoes 876.9 926.1 5.6
5. Infants' Wear 610.1 642.2 5.3
6. Women's Underwear 561.4 568.3 1.2
7. Women's Hosiery 322.8 334.2 3.5
8. Women's and Girls' Accessories 549.3 538.3 -2.0
9. Women's Outerwear and Girls'
Wear 392.0 385.0 -1.8
10. Men's Clothing 624.1 613.5 -1.7
11. Men's Furnishings 630.4 621.5 -1.4
12. Boys' Clothing and Furnishings 488.9 491.7 0.6
13. Jewelry 961.2 924.3 -3.8
14. Notions 747.4 768.3 2.8
15. Toilet Articles and Drugs 968.8 971.1 0.2
16. Furniture and Bedding 682.9 670.6 -1.8
17. Floor Coverings 602.7 607.9 0.9
18. Housewares 801.4 780.7 -2.6
19. Major Appliances 235.7 233.6 -0.9
20. Radio and Television 66.3 59.8 -9.8
21. Recreation and Education /2/ 98.7 93.0 -5.8
22. Home Improvements /2/ 127.6 128.2 0.5
23. Auto Accessories /2/ 106.7 106.3 -0.4
Groups 1 - 15: Soft Goods 599.9 592.9 -1.2
Groups 16 - 20: Durable Goods 452.2 438.1 -3.1
Groups 21 - 23: Misc. Goods /2/ 104.1 100.2 -3.7
Store Total /3/ 545.0 534.9 -1.9
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/1/ Absence of a minus sign before the 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).