I took REG exam two days ago, and I passed it easily.
"CPA Regulation", also known as REG exam, is a AICPA Certification. With the complete collection of questions and answers, BraindumpsPass has assembled to take you through 70 Q&As to your REG Exam preparation. In the REG exam resources, you will cover every field and category in AICPA Certification Certification helping to ready you for your successful AICPA Certification.
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Federal Taxation of Entities | 28-38% | - S Corporations - C Corporations - Partnerships and LLCs - Book-tax differences and distributions - Tax-exempt organizations |
| Topic 2: Business Law | 10-20% | - Secured transactions (UCC Article 9) - Contracts and UCC Article 2 - Debtor-creditor relationships and bankruptcy - Business structure legal framework - Agency relationships |
| Topic 3: 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 |
| Topic 4: Federal Taxation of Property Transactions | 12-22% | - Cost recovery, depreciation, and amortization - Recognition of gains and losses - Capital vs ordinary asset classification - Basis and holding periods of assets - Like-kind exchanges and involuntary conversions |
| Topic 5: Federal Taxation of Individuals | 15-25% | - Adjustments, deductions, and credits - Pass-through entity income reporting - Filing status and exemptions - Loss limitations and tax computation - Gross income inclusions and exclusions |
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.
The Moores received a stock dividend in 1994 from Ace Corp. They had the option to receive either cash
or Ace stock with a fair market value of $900 as of the date of distribution. The par value of the stock was
$ 500.
Correct Answer: A 🗳️
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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.
Correct Answer: C 🗳️
Explanation: Only visible for BraindumpsPass members. You can sign-up / login (it's free).
Which of the following sales should be reported as a capital gain?
Correct Answer: C 🗳️
Explanation: Only visible for BraindumpsPass members. You can sign-up / login (it's free).
Smith, an individual calendar-year taxpayer, purchased 100 shares of Core Co. common stock for
$ 15,000 on December 15, 1992, and an additional 100 shares for $13,000 on December 30, 1992. On
January 3, 1993, Smith sold the shares purchased on December 15, 1992, for $13,000. What amount of
loss from the sale of Core's stock is deductible on Smith's 1992 and 1993 income tax returns?
Correct Answer: A 🗳️
Explanation: Only visible for BraindumpsPass members. You can sign-up / login (it's free).
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:
Correct Answer: C 🗳️
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