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AICPA REG Exam Syllabus Topics:

SectionWeightObjectives
Federal Taxation of Individuals15–25%- Individual income taxation
  • 1. Deductions and credits
    • 2. Gross income and exclusions
      Federal Taxation of Property Transactions12–22%- Property transactions
      • 1. Gains and losses recognition
        • 2. Basis computation
          Business Law10–20%- Business structure law
          • 1. Secured transactions basics
            • 2. UCC principles
              - Contracts and agency
              • 1. Agency relationships and liability
                • 2. Contract formation and enforceability
                  Federal Taxation of Entities18–28%- Business entity taxation
                  • 1. Partnership taxation
                    • 2. S corporations taxation
                      • 3. C corporations taxation
                        Ethics, Professional Responsibilities, and Federal Tax Procedures15–25%- Federal tax procedures
                        • 1. Tax return filing, penalties, and statute of limitations
                          • 2. IRS authority and procedures
                            - Ethics and professional conduct
                            • 1. Ethical decision-making frameworks
                              • 2. Professional responsibilities and standards

                                AICPA CPA Regulation Sample Questions:

                                Question #1

                                An individual had the following capital gains and losses for the year:

                                What will be the net gain (loss) reported by the individual and at what applicable tax rate(s)?

                                • A. Short-term loss of $3,000 at the ordinary rate and long-term capital gain of $86,000 at the 15% rate.
                                • B. Short-term loss of $3,000 at the ordinary rate, long-term capital gain of $10,000 at the 15% rate,
                                  collectibles gain of $10,000 at the 28% rate, and Section 1250 gain of $56,000 at the 25% rate.
                                • C. Long-term capital gain of $3,000 at the 15% rate, collectibles gain of $10,000 at the 28% rate, and
                                  Section 1250 gain of $56,000 at the 25% rate.
                                • D. Long-term gain of $16,000 at the 15% rate.
                                Reveal Solution  Discussion  0

                                Correct Answer: D  🗳️

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                                Question #2

                                Cobb, an unmarried individual, had an adjusted gross income of $200,000 in 1990 before any IRA
                                deduction, taxable social security benefits, or passive activity losses. Cobb incurred a loss of $30,000 in
                                1 990 from rental real estate in which he actively participated. What amount of loss attributable to this
                                rental real estate can be used in 1990 as an offset against income from nonpassive sources?

                                • A. $12,500
                                • B. $0
                                • C. $30,000
                                • D. $25,000
                                Reveal Solution  Discussion  0

                                Correct Answer: B  🗳️

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                                Question #3

                                Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts
                                receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the
                                year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year?

                                • A. $100,000
                                • B. $90,000
                                • C. $75,000
                                • D. $110,000
                                Reveal Solution  Discussion  0

                                Correct Answer: A  🗳️

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                                Question #4

                                Ryan, age 57, is single with no dependents. On July 1, 1997, Ryan's principal residence was sold for the
                                net amount of $500,000 after all selling expenses. Ryan bought the house in 1963 and occupied it until
                                sold. On the date of sale, the house had a basis of $180,000. Ryan does not intend to buy another
                                residence. What is the maximum exclusion of gain on sale of the residence that may be claimed in Ryan's
                                1 997 income tax return?

                                • A. $0
                                • B. $320,000
                                • C. $250,000
                                • D. $125,000
                                Reveal Solution  Discussion  0

                                Correct Answer: C  🗳️

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                                Question #5

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

                                Correct Answer: D  🗳️

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