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AICPA REG Exam Syllabus Topics:

AICPA CPA Regulation Sample Questions:

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

A) Taxpayers who were divorced during the year.
B) Taxpayers who were married but lived apart 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 legally separated but lived together for the entire year.

2. Starr, a self-employed individual, purchased a piece of equipment for use in Starr's business. The costs
associated with the acquisition of the equipment were:

What is the depreciable basis of the equipment?

A) $59,425
B) $55,000
C) $59,125
D) $58,400

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

4. A cash basis taxpayer should report gross income:

A) Only for the year in which income is actually received whether in cash or in property.
B) For the year in which income is either actually or constructively received, whether in cash or in
property.
C) For the year in which income is either actually or constructively received in cash only.
D) Only for the year in which income is actually received in cash.

5. Which one of the following statements is correct with regard to an individual taxpayer who has elected to
amortize the premium on a bond that yields taxable interest?

A) The amortization is treated as an itemized deduction.
B) The bond's basis is reduced by the amortization.
C) The bond's basis is increased by the amortization.
D) The amortization is not treated as a reduction of taxable income.

Solutions: