AICPA REG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Federal Taxation of Property Transactions | 12–22% | - Property transactions
|
| Federal Taxation of Entities | 18–28% | - Business entity taxation
|
| Ethics, Professional Responsibilities, and Federal Tax Procedures | 15–25% | - Federal tax procedures
|
| Federal Taxation of Individuals | 15–25% | - Individual income taxation
|
| Business Law | 10–20% | - Contracts and agency
|
AICPA CPA Regulation Sample Questions:
Question 1
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 stock dividend in 1994 from Ace Corp. They had the option to receive either cash
or Ace stock with a fair market value of $900 as of the date of distribution. The par value of the stock was
$ 500.
A. $0
B. $25,000
C. $3,000
D. $75,000
E. $2,000
F. $1,300
G. $900
H. $55,000
I. $50,000
J. $1,500
K. $1,250
L. $1,000
M. $10,000
N. $2,500
O. $500
Question 2
Elm Corp. is an accrual-basis calendar-year C corporation with 100,000 shares of voting common stock
issued and outstanding as of December 28, 1996. On Friday, December 29, 1996, Hall surrendered 2,000
shares of Elm stock to Elm in exchange for $33,000 cash. Hall had no direct or indirect interest in Elm
after the stock surrender. Additional information follows:
What amount of income did Hall recognize from the stock surrender?
A. $17,000 capital gain.
B. $25,000 dividend.
C. $33,000 dividend.
D. $18,000 capital gain.
Question 3
Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of
the following costs should be capitalized with respect to inventory if no exceptions have been met?
A. Option A
B. Option D
C. Option C
D. Option B
Question 4
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.
In 1994, Joan received $3,500 as beneficiary of the death benefit, which was provided by her brother's
employer. Joan's brother did not have a nonforfeitable right to receive the money while living.
A. $0
B. $25,000
C. $3,000
D. $75,000
E. $2,000
F. $1,300
G. $900
H. $55,000
I. $50,000
J. $1,500
K. $1,250
L. $1,000
M. $10,000
N. $2,500
O. $500
Question 5
Leker exchanged a van that was used exclusively for business and had an adjusted tax basis of $20,000
for a new van. The new van had a fair market value of $10,000, and Leker also received $3,000 in cash.
What was Leker's tax basis in the acquired van?
A. $7,000
B. $17,000
C. $20,000
D. $13,000
Solutions:
| Question 1 Answer: G | Question 2 Answer: A | Question 3 Answer: A | Question 4 Answer: A | Question 5 Answer: B |
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