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AICPA REG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Federal Taxation of Entities | 23-33% | - Entity-level tax planning and reporting requirements - Tax compliance for corporations, partnerships, LLCs, and S corporations |
| Federal Taxation of Individuals | 22-32% | - Tax filing requirements and procedures - Adjustments, deductions, exemptions and credits - Individual taxable income and tax compliance |
| Business Law | 15-25% | - Legal duties and responsibilities in business transactions - Business structures and federal business regulations - Agency, contracts, and debtor-creditor relationships |
| Federal Taxation of Property Transactions | 5-15% | - Basis, cost recovery (depreciation and amortization) - Gains and losses on disposition of assets |
| Ethics, Professional Responsibilities and Federal Tax Procedures | 10-20% | - Licensing and disciplinary systems for CPA practice - Ethics and responsibilities in tax practice (Treasury Department Circular 230) - Federal tax procedures, disclosures, penalties, and appeals |
AICPA CPA Regulation Sample Questions:
1. On December 1, 1997, Krest, a self-employed cash basis taxpayer, borrowed $200,000 to use in her
business. The loan was to be repaid on November 30, 1998. Krest paid the entire interest amount of
$ 24,000 on December 1, 1997. What amount of interest was deductible on Krest's 1997 income tax return?
A) $0
B) $24,000
C) $2,000
D) $22,000
2. Darr, an employee of Sorce C corporation, is not a shareholder. Which of the following would be included
in a taxpayer's gross income?
A) Employer-provided medical insurance coverage under a health plan.
B) The fair market value of land that the taxpayer inherited from an uncle.
C) The dividend income on shares of stock that the taxpayer received for services rendered.
D) A $10,000 gift from the taxpayer's grandparents.
3. Hall, a divorced person and custodian of her 12-year old child, filed her 1990 federal income tax return as
head of a household. She submitted the following information to the CPA who prepared her 1990 return:
. In 1990, Hall sold an antique that she bought in 1980 to display in her home. Hall paid $800 for the
antique and sold it for $1,400, using the proceeds to pay a court ordered judgment.
The $600 gain that Hall realized on the sale of the antique should be treated as:
A) An involuntary conversion.
B) A nontaxable antiquities transaction.
C) Ordinary income.
D) Long-term capital gain.
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) $90,200
B) $90,000
C) $40,000
D) $40,200
5. Which one of the following will result in an accruable expense for an accrual-basis taxpayer?
A) A signed contract for repair work to be done and the work is to be completed at a later date.
B) A repair completed prior to year end but not invoiced.
C) An invoice dated prior to year end but the repair completed after year end.
D) A repair completed prior to year end and paid upon completion.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: B |






