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AICPA REG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Federal Taxation of Entities | 28-38% | - Book-tax differences and distributions - Tax-exempt organizations - Partnerships and LLCs - C Corporations - S Corporations |
| Federal Taxation of Property Transactions | 12-22% | - Like-kind exchanges and involuntary conversions - Recognition of gains and losses - Cost recovery, depreciation, and amortization - Capital vs ordinary asset classification - Basis and holding periods of assets |
| Business Law | 10-20% | - Debtor-creditor relationships and bankruptcy - Secured transactions (UCC Article 9) - Agency relationships - Business structure legal framework - Contracts and UCC Article 2 |
| Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20% | - IRS audit, appeals, and collection procedures - Ethics and responsibilities in tax practice - Treasury Department Circular 230 rules - Licensing and disciplinary systems - Tax preparer penalties and due diligence |
| Federal Taxation of Individuals | 15-25% | - Adjustments, deductions, and credits - Loss limitations and tax computation - Pass-through entity income reporting - Filing status and exemptions - Gross income inclusions and exclusions |
AICPA CPA Regulation Sample Questions:
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.
Tom's 1994 wages were $53,000. In addition, Tom's employer provided group-term life insurance on
Tom's life in excess of $50,000. The value of such excess coverage was $2,000.
A) $1,500
B) $1,000
C) $75,000
D) $1,300
E) $0
F) $10,000
G) $2,500
H) $1,250
I) $900
J) $500
K) $55,000
L) $2,000
M) $3,000
N) $25,000
O) $50,000
2. Rich is a cash basis self-employed air-conditioning repairman with 1993 gross business receipts of
$ 20,000. Rich's cash disbursements were as follows:
What amount should Rich report as net self-employment income?
A) $13,900
B) $14,100
C) $15,100
D) $14,900
3. The rule limiting the allowability of passive activity losses and credits applies to:
A) Personal service corporations.
B) Partnerships.
C) Widely-held C corporations.
D) S corporations.
4. Which of the following statements is the best definition of real property?
A) Real property is only land.
B) Real property is land and everything permanently attached to it.
C) Real property is land and intangible property in realized form.
D) Real property is all tangible property including land.
5. Farr made a gift of stock to her child, Pat. At the date of gift, Farr's stock basis was $10,000 and the
stock's fair market value was $15,000. No gift taxes were paid. What is Pat's basis in the stock for
computing gain?
A) $15,000
B) $5,000
C) $0
D) $10,000
Solutions:
| Question # 1 Answer: E | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |


