AICPA REG Exam : CPA Regulation

  • Exam Code: REG
  • Exam Name: CPA Regulation
  • Updated: Sep 08, 2026
  • Q & A: 70 Questions and Answers

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AICPA REG Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Ethics, Professional Responsibilities and Federal Tax Procedures10-20%- Ethics and responsibilities in tax practice (Treasury Department Circular 230)
- Federal tax procedures, disclosures, penalties, and appeals
- Licensing and disciplinary systems for CPA practice
Topic 2: Business Law15-25%- Legal duties and responsibilities in business transactions
- Agency, contracts, and debtor-creditor relationships
- Business structures and federal business regulations
Topic 3: Federal Taxation of Individuals22-32%- Adjustments, deductions, exemptions and credits
- Individual taxable income and tax compliance
- Tax filing requirements and procedures
Topic 4: Federal Taxation of Entities23-33%- Tax compliance for corporations, partnerships, LLCs, and S corporations
- Entity-level tax planning and reporting requirements
Topic 5: Federal Taxation of Property Transactions5-15%- Gains and losses on disposition of assets
- Basis, cost recovery (depreciation and amortization)

AICPA CPA Regulation Sample Questions:

Question #1

In the current year Jensen had the following items:

What is Jensen's AGI for the current year?

  • A. $44,000
  • B. $62,000
  • C. $59,000
  • D. $84,000
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

Under the uniform capitalization rules applicable to property acquired for resale, which of the following
costs should be capitalized with respect to inventory if no exceptions are met?

  • A. Option B
  • B. Option C
  • C. Option A
  • D. Option D
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #3

Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own
and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994
Form 1040.
The Moores received a $500 security deposit on their rental property in 1994. They are required to return
the amount to the tenant.

  • A. $25,000
  • B. $2,500
  • C. $75,000
  • D. $3,000
  • E. $2,000
  • F. $1,250
  • G. $50,000
  • H. $500
  • I. $1,000
  • J. $0
  • K. $900
  • L. $10,000
  • M. $1,300
  • N. $1,500
  • O. $55,000
Reveal Solution  Discussion  0

Correct Answer: J  🗳️

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Question #4

Fred Berk bought a plot of land with a cash payment of $40,000 and a mortgage of $50,000. In addition,
Berk paid $200 for a title insurance policy. Berk's basis in this land is:

  • A. $40,200
  • B. $40,000
  • C. $90,200
  • D. $90,000
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

Allen owns 100 shares of Prime Corp., a publicly-traded company, which Allen purchased on January 1,
2 001, for $10,000. On January 1, 2003, Prime declared a 2-for-1 stock split when the fair market value
(FMV) of the stock was $120 per share. Immediately following the split, the FMV of Prime stock was $62
per share. On February 1, 2003, Allen had his broker specifically sell the 100 shares of Prime stock
received in the split when the FMV of the stock was $65 per share. What amount should Allen recognize
as long-term capital gain income on his Form 1040, U.S. Individual Income Tax Return, for 2003?

  • A. $2,000
  • B. $750
  • C. $300
  • D. $1,500
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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