Updated: Aug 27, 2026
No. of Questions: 70 Questions & Answers with Testing Engine
Download Limit: Unlimited
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| Certification Vendor: | AICPA |
|---|---|
| Exam Name: | Regulation |
| Exam Number: | REG |
| Exam Price: | $262.64 USD per section (varies by jurisdiction) |
| Certificate Validity Period: | 30 months from passing first section |
| Passing Score: | 75 (scaled score 0-99) |
| Related Certifications: | TCP BAR FAR AUD ISC |
| Exam Duration: | 240 minutes |
| Exam Format: | Task-Based Simulations (TBS), Multiple Choice Questions (MCQ) |
| Available Languages: | English |
| Real Exam Qty: | 72 MCQs + 8 TBSs |
| Recommended Training: | AICPA CPA Exam Blueprints & Study Resources NASBA Candidate Bulletin |
| Exam Registration: | NASBA CPA Exam Services AICPA CPA Exam Registration |
| Sample Questions: | AICPA REG Sample Questions |
| Exam Way: | Computer-based testing at Prometric test centers; online proctoring not available |
| Pre Condition: | Bachelor's degree + 120–150 semester credits (varies by state board); minimum accounting/business coursework required |
| Official Syllabus URL: | https://us.aicpa.org/becomeacpa/cpaexam/exam-content-blueprints |
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Federal Taxation of Individuals | 15-25% | - Filing status and exemptions - Adjustments, deductions, and credits - Loss limitations and tax computation - Gross income inclusions and exclusions - Pass-through entity income reporting |
| Topic 2: Federal Taxation of Entities | 28-38% | - C Corporations - Book-tax differences and distributions - Tax-exempt organizations - Partnerships and LLCs - S Corporations |
| Topic 3: Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20% | - Licensing and disciplinary systems - IRS audit, appeals, and collection procedures - Ethics and responsibilities in tax practice - Treasury Department Circular 230 rules - Tax preparer penalties and due diligence |
| Topic 4: Federal Taxation of Property Transactions | 12-22% | - Capital vs ordinary asset classification - Basis and holding periods of assets - Cost recovery, depreciation, and amortization - Recognition of gains and losses - Like-kind exchanges and involuntary conversions |
| Topic 5: Business Law | 10-20% | - Debtor-creditor relationships and bankruptcy - Contracts and UCC Article 2 - Secured transactions (UCC Article 9) - Agency relationships - Business structure legal framework |
Question 1
Leker exchanged a van that was used exclusively for business and had an adjusted tax basis of $20,000
for a new van. The new van had a fair market value of $10,000, and Leker also received $3,000 in cash.
What was Leker's tax basis in the acquired van?
A. $17,000
B. $13,000
C. $7,000
D. $20,000
Question 2
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 received $10,000, consisting of $5,000 each of principal and interest, when he redeemed a Series
EE savings bond in 1994. The bond was issued in his name in 1990 and the proceeds were used to pay
for Laura's college tuition. Tom had not elected to report the yearly increases in the value of the bond.
A. $55,000
B. $10,000
C. $900
D. $3,000
E. $2,500
F. $1,300
G. $50,000
H. $25,000
I. $0
J. $1,500
K. $1,250
L. $1,000
M. $500
N. $75,000
O. $2,000
Question 3
During 1993 Kay received interest income as follows:
On U.S. Treasury certificates $4,000
On refund of 1991 federal income tax 500
The total amount of interest subject to tax in Kay's 1993 tax return is:
A. $4,000
B. $4,500
C. $0
D. $500
Question 4
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 and paid upon completion.
C. An invoice dated prior to year end but the repair completed after year end.
D. A repair completed prior to year end but not invoiced.
Question 5
Which of the following sales should be reported as a capital gain?
A. Real property subdivided and sold by a dealer.
B. Government bonds sold by an individual investor.
C. Sale of inventory.
D. Sale of equipment.
Solutions:
| Question 1 Answer: A | Question 2 Answer: I | Question 3 Answer: B | Question 4 Answer: D | Question 5 Answer: B |
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