AICPA REG exam dumps : CPA Regulation

  • Exam Code: REG
  • Exam Name: CPA Regulation
  • Updated: Aug 22, 2026     Q & A: 70 Questions and Answers

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AICPA REG Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Business Law10-20%- Debtor-creditor relationships and bankruptcy
- Business structure legal framework
- Agency relationships
- Secured transactions (UCC Article 9)
- Contracts and UCC Article 2
Topic 2: Ethics, Professional Responsibilities, and Federal Tax Procedures10-20%- Treasury Department Circular 230 rules
- Licensing and disciplinary systems
- Tax preparer penalties and due diligence
- IRS audit, appeals, and collection procedures
- Ethics and responsibilities in tax practice
Topic 3: Federal Taxation of Entities28-38%- Partnerships and LLCs
- S Corporations
- Book-tax differences and distributions
- C Corporations
- Tax-exempt organizations
Topic 4: Federal Taxation of Property Transactions12-22%- Capital vs ordinary asset classification
- Basis and holding periods of assets
- Recognition of gains and losses
- Like-kind exchanges and involuntary conversions
- Cost recovery, depreciation, and amortization
Topic 5: Federal Taxation of Individuals15-25%- Loss limitations and tax computation
- Filing status and exemptions
- Gross income inclusions and exclusions
- Pass-through entity income reporting
- Adjustments, deductions, and credits

AICPA CPA Regulation Sample Questions:

1. 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) $250,000
B) $125,000
C) $320,000
D) $0


2. 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


3. Doris and Lydia are equal partners in the capital and profits of Agee & Nolan, but are otherwise unrelated.
The following information pertains to 300 shares of Mast Corp. stock sold by Lydia to Agee & Nolan:

The amount of long-term capital loss that Lydia realized in 1988 on the sale of this stock was:

A) $3,000
B) $5,000
C) $2,500
D) $0


4. Which payment(s) is(are) included in a recipient's gross income?
I. Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a
requirement toward obtaining the degree.
II. A grant to a Ph.D. candidate for his participation in a university-sponsored research project for the
benefit of the university.

A) Neither I nor II.
B) Both I and II.
C) I only.
D) II only.


5. John and Mary were divorced in 1991. The divorce decree provides that John pay alimony of $10,000 per
year, to be reduced by 20% on their child's 18th birthday. During 1992, John paid $7,000 directly to Mary
and $3,000 to Spring College for Mary's tuition. What amount of these payments should be reported as
income in Mary's 1992 income tax return?

A) $8,600
B) $5,600
C) $8,000
D) $10,000


Solutions:

Question # 1
Answer: A
Question # 2
Answer: D
Question # 3
Answer: B
Question # 4
Answer: B
Question # 5
Answer: C

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