Some candidates read on a tablet; others prefer drilling in a simulator. 2Pass4sure's AICPA CPA Regulation package comes as a printable PDF, a Windows desktop test engine, and a browser-based online engine, so the 70 practice questions for the REG exam fit the way you actually study.

AICPA REG Exam Overview:

AICPA REG Exam Syllabus Topics:

AICPA REG Exam: Everything You Wanted to Ask

AICPA CPA Regulation Sample Questions:

Question 1

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:
. The divorce agreement, executed in 1983, provides for Hall to receive $3,000 per month, of which $600
is designated as child support. After the child reaches 18, the monthly payments are to be reduced to
$ 2,400 and are to continue until remarriage or death. However, for the year 1990, Hall received a total of
only $5,000 from her former husband. Hall paid an attorney $2,000 in 1990 in a suit to collect the alimony
owed.
. In June 1990, Hall's mother gifted her 100 shares of a listed stock. The donor's basis for this stock, which
she bought in 1970, was $4,000, and market value on the date of the gift was $3,000. Hall sold this stock
in July 1990 for $3,500. The donor paid no gift tax.
. During 1990, Hall spent a total of $1,000 for state lottery tickets. Her lottery winnings in 1990 totaled
$ 200.
. Hall earned a salary of $25,000 in 1990. Hall was not covered by any type of retirement plan, but
contributed $2,000 to an IRA in 1990.
. 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.
. Hall paid the following expenses in 1990 pertaining to the home that she owns: realty taxes, $3,400;
mortgage interest, $7,000; casualty insurance, $490; assessment by city for construction of a sewer
system, $910; interest of $1,000 on a personal, unsecured bank loan, the proceeds of which were used
for home improvements. Hall does not rent out any portion of the home.
What amount should be reported in Hall's 1990 return as alimony income?

A. $36,000
B. $28,800
C. $5,000
D. $0

Question 2

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. $3,000
B. $2,500
C. $5,000
D. $0

Question 3

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. $13,000
B. $20,000
C. $17,000
D. $7,000

Question 4

Clark bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of
college tuition for Clark's dependent child. One of the conditions that must be met for tax exemption of
accumulated interest on these bonds is that the:

A. Purchaser of the bonds must be the sole owner of the bonds (or joint owner with his or her spouse).
B. Bonds must be transferred to the college for redemption by the college rather than by the owner of the
bonds.
C. Bonds must be bought by the owner of the bonds before the owner reaches the age of 24.
D. Bonds must be bought by a parent (or both parents) and put in the name of the dependent child.

Question 5

Adams owns a second residence that is used for both personal and rental purposes. During 2001, Adams
used the second residence for 50 days and rented the residence for 200 days. Which of the following
statements is correct?

A. A rental loss may be deducted if rental-related expenses exceed rental income.
B. All mortgage interest and taxes on the property will be deducted to determine the property's net income
or loss.
C. Depreciation may not be deducted on the property under any circumstances.
D. Utilities and maintenance on the property must be divided between personal and rental use.

Solutions: