-24-
* * * * * * *
The index method has been used by the company
in computing the value of the dollar value
pool. * * *
(We shall refer to the LIFO inventory method that Consolidated
elected in the 1980 Form 970 as Consolidated's LIFO method.)
Consolidated submitted another Form 970 with its 1982 tax return
(1982 Form 970). As completed by Consolidated and as pertinent
here, the 1982 Form 970 differed from the 1980 Form 970 only with
respect to the following questions and answers:
8. (a) If you use pools, list and describe contents of
each pool[:] Two pools are used; motor vehicle parts;
and machine shop products. Pools include raw material,
purchased parts and remanufacturing costs.
* * * * * * *
(c) Method used in computing LIFO value of dollar-
value pools
* * * * * * *
Simplified LIFO per Reg. Sec. 1.472-8(e)(3) [i.e.,
inventory price index (IPI) computation method]
* * * * * * *
Taxpayer initially elected LIFO for the tax year ending
December 31, 1980. Form 970 was timely filed for such
election and the taxpayer consistently followed such
dollar value method. However, due to changes made by
the Economic Recovery Tax Act of 1981, which allows a
change to the use of published indexes, taxpayer hereby
elects to compute LIFO inventories by using such
Government published indexes as prescribed in Reg.
1.472-8(e)(3). Per Reg. 1.472-8(e)(3)(v), prior
consent of the Commissioner is not required if the
change is made for the first or second taxable year
ending after 1981.
* * * * * * *
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