AICPA REG exam dumps : CPA Regulation

  • Exam Code: REG
  • Exam Name: CPA Regulation
  • Updated: Oct 04, 2026     Q & A: 70 Questions and Answers

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AICPA REG Exam Syllabus Topics:

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

AICPA CPA Regulation Sample Questions:

Question #1

Barkley owns a vacation cabin that was rented to unrelated parties for 10 days during the year for $2,500.
The cabin was used personally by Barkley for three months and left vacant for the rest of the year.
Expenses for the cabin were as follows:
Real estate taxes $1,000
Maintenance and utilities $2,000
How much rental income (loss) is included in Barkley's adjusted gross income?

  • A. $500
  • B. $(1,500)
  • C. $(500)
  • D. $0
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

Which one of the following statements is correct with regard to an individual taxpayer who has elected to
amortize the premium on a bond that yields taxable interest?

  • A. The bond's basis is increased by the amortization.
  • B. The amortization is treated as an itemized deduction.
  • C. The amortization is not treated as a reduction of taxable income.
  • D. The bond's basis is reduced by the amortization.
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.
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. $75,000
  • B. $1,000
  • C. $900
  • D. $500
  • E. $3,000
  • F. $2,000
  • G. $1,250
  • H. $2,500
  • I. $0
  • J. $25,000
  • K. $10,000
  • L. $50,000
  • M. $1,500
  • N. $1,300
  • O. $55,000
Reveal Solution  Discussion  0

Correct Answer: I  🗳️

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Question #4

A cash basis taxpayer should report gross income:

  • A. For the year in which income is either actually or constructively received in cash only.
  • B. Only for the year in which income is actually received in cash.
  • C. For the year in which income is either actually or constructively received, whether in cash or in
    property.
  • D. Only for the year in which income is actually received whether in cash or in property.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

Freeman, a single individual, reported the following income in the current year:
Guaranteed payment from services rendered to a partnership $50,000
Ordinary income from a S corporation $20,000
What amount of Freeman's income is subject to self-employment tax?

  • A. $70,000
  • B. $0
  • C. $50,000
  • D. $20,000
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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