AICPA REG Questions & Answers - in .pdf
- Total Q&A: 70
- Update: May 29, 2026
- Price: $49.99
- Vendor: AICPA
- Exam Code: REG
- Exam Name: CPA Regulation
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AICPA REG Q&A - Testing Engine
- Total Q&A: 70
- Update: May 29, 2026
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- Vendor: AICPA
- Exam Code: REG
- Exam Name: CPA Regulation
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AICPA CPA Regulation Sample Questions:
1. John and Mary were divorced in 1991. The divorce decree provides that John pay alimony of $10,000 per
year, to be reduced by 20% on their child's 18th birthday. During 1992, John paid $7,000 directly to Mary
and $3,000 to Spring College for Mary's tuition. What amount of these payments should be reported as
income in Mary's 1992 income tax return?
A) $8,600
B) $8,000
C) $10,000
D) $5,600
2. 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 a parent (or both parents) and put in the name of the dependent child.
D) Bonds must be bought by the owner of the bonds before the owner reaches the age of 24.
3. On December 31, 1989, a building owned by Pine Corp. was totally destroyed by fire. The building had
fire insurance coverage up to $500,000. Other pertinent information as of December 31, 1989 follows:
During January 1990, before the 1989 financial statements were issued, Pine received insurance
proceeds of $500,000. On what amount should Pine base the determination of its loss on involuntary
conversion?
A) $550,000
B) $560,000
C) $530,000
D) $520,000
4. Wallace purchased 500 shares of Kingpin, Inc. 15 years ago for $25,000. Wallace has worked as an
owner/employee and owned 40% of the company throughout this time. This year, Kingpin, which is not an
S corporation, redeemed 100% of Wallace's stock for $200,000. What is the treatment and amount of
income or gain that Wallace should report?
A) $175,000 ordinary income.
B) $0
C) $200,000 long-term capital gain.
D) $175,000 long-term capital gain.
5. 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) $58,400
B) $59,125
C) $59,425
D) $55,000
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: C |
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