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AICPA REG Exam Syllabus Topics:

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

AICPA CPA Regulation Sample Questions:

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. $5,000
  • B. $0
  • C. $3,000
  • D. $2,500
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for PrepAwayExam members. You can sign-up / login (it's free).

Allen owns 100 shares of Prime Corp., a publicly-traded company, which Allen purchased on January 1,
2 001, for $10,000. On January 1, 2003, Prime declared a 2-for-1 stock split when the fair market value
(FMV) of the stock was $120 per share. Immediately following the split, the FMV of Prime stock was $62
per share. On February 1, 2003, Allen had his broker specifically sell the 100 shares of Prime stock
received in the split when the FMV of the stock was $65 per share. What amount should Allen recognize
as long-term capital gain income on his Form 1040, U.S. Individual Income Tax Return, for 2003?

  • A. $2,000
  • B. $1,500
  • C. $300
  • D. $750
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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In 19X4, Smith, a divorced person, provided over one half the support for his widowed mother, Ruth, and
his son, Clay, both of whom are U.S. citizens. During 19X4, Ruth did not live with Smith. She received
$ 9,000 in Social Security benefits. Clay, a 25 year-old full-time graduate student, and his wife lived with
Smith. Clay had no income but filed a joint return for 19X4, owing an additional $500 in taxes on his wife's
income. How many exemptions was Smith entitled to claim on his 19X4 tax return?

  • A. 1
  • B. 3
  • C. 2
  • D. 4
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Conner purchased 300 shares of Zinco stock for $30,000 in 1980. On May 23, 1994, Conner sold all the
stock to his daughter Alice for $20,000, its then fair market value. Conner realized no other gain or loss
during 1994. On July 26, 1994, Alice sold the 300 shares of Zinco for $25,000.
What amount of the loss from the sale of Zinco stock can Conner deduct in 1994?

  • A. $5,000
  • B. $10,000
  • C. $0
  • D. $3,000
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for PrepAwayExam members. You can sign-up / login (it's free).

In which of the following situations may taxpayers file as married filing jointly?

  • A. Taxpayers who were legally separated but lived together for the entire year.
  • B. Taxpayers who were divorced during the year.
  • C. Taxpayers who were married but lived under a legal separation agreement at the end of the year.
  • D. Taxpayers who were married but lived apart during the year.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Explanation: Only visible for PrepAwayExam members. You can sign-up / login (it's free).

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