Internal Revenue Service
Revenue Ruling

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Rev. Rul. 2001-5

The following Department Store Inventory Price Indexes for November 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, November 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
                                      Nov.     Nov.     Nov. 1999 to
               Groups                 1999     2000     Nov. 2000 /1/
_____________________________________________________________________
 1. Piece Goods                       514.3    499.6        -2.9
 2. Domestics and Draperies           622.0    610.2        -1.9
 3. Women's and Children's Shoes      651.4    664.0         1.9
 4. Men's Shoes                       875.1    911.2         4.1
 5. Infants' Wear                     647.6    648.0         0.1
 6. Women's Underwear                 571.9    577.3         0.9
 7. Women's Hosiery                   328.9    347.0         5.5
 8. Women's and Girls' Accessories    539.6    555.4         2.9
 9. Women's Outerwear and Girls'
    Wear                              410.3    402.0        -2.0
10. Men's Clothing                    617.4    598.8        -3.0
11. Men's Furnishings                 627.6    639.2         1.8
12. Boys' Clothing and Furnishings    510.2    501.3        -1.7
13. Jewelry                           950.5    936.0        -1.5
14. Notions                           764.6    798.0         4.4
15. Toilet Articles and Drugs         983.6    973.8        -1.0
16. Furniture and Bedding             689.7    696.6         1.0
17. Floor Coverings                   602.1    625.6         3.9
18. Housewares                        789.3    775.6        -1.7
19. Major Appliances                  235.5    227.9        -3.2
20. Radio and Television               63.5     57.5        -9.4
21. Recreation and Education /2/       96.1     92.3        -4.0
22. Home Improvements /2/             129.2    129.2         0.0
23. Auto Accessories /2/              107.6    107.6         0.0
Groups  1 - 15: Soft Goods            606.9    604.6        -0.4
Groups 16 - 20: Durable Goods         446.9    435.6        -2.5
Groups 21 - 23: Misc. Goods /2/       102.7    100.1        -2.5
     Store Total /3/                  547.2    541.4        -1.1
_____________________________________________________________________
     /1/ Absence of a minus sign before percentage change in this
column signifies 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, foods,
liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Richard C. Farley, Jr. 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).