Official Bank 0/69

Certified Public Accountant CPA Regulation (CPA-REGULATION) - AICPA Actual Exam Questions

Last updated on May 13, 2026

97% Exam Compliance
69 Total Questions
1
Question

During 2001, Adler had the following cash receipts: What is the total amount that must be included in gross income on Adler's 2001 income tax return?

Question image
Options
A

$18,000

B

$18,400

C

$19,500

D

$19,900

Discussion (0 comments)

to join the discussion

Community Discussion

No discussions yet. Be the first to ask!

2
Question

Ryan, age 57, is single with no dependents. On July 1, 1997, Ryan's principal residence was sold for the net amount of $500,000 after all selling expenses. Ryan bought the house in 1963 and occupied it until sold. On the date of sale, the house had a basis of $180,000. Ryan does not intend to buy another residence. What is the maximum exclusion of gain on sale of the residence that may be claimed in Ryan's 1997 income tax return?

Options
A

$320,000

B

$250,000

C

$125,000

D

$0

Discussion (0 comments)

to join the discussion

Community Discussion

No discussions yet. Be the first to ask!

3
Question

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. In 1994, Joan received $3,500 as beneficiary of the death benefit, which was provided by her brother’s employer. Joan’s brother did not have a nonforfeitable right to receive the money while living.

Options
A

$0

B

$500

C

$900

D

$1,000

E

$1,250

F

$1,300

G

$1,500

H

$2,000

I

$2,500

J

$3,000

K

$10,000

L

$25,000

M

$50,000

N

$55,000

O

$75,000

Discussion (0 comments)

to join the discussion

Community Discussion

No discussions yet. Be the first to ask!

4
Question

In 19X4, Smith, a divorced person, provided over one half the support for his widowed mother, Ruth, and his son, Clay, both of whom are U.S. citizens. During 19X4, Ruth did not live with Smith. She received $9,000 in Social Security benefits. Clay, a 25 year-old full-time graduate student, and his wife lived with Smith. Clay had no income but filed a joint return for 19X4, owing an additional $500 in taxes on his wife's income. How many exemptions was Smith entitled to claim on his 19X4 tax return?

Options
A

4

B

3

C

2

D

1

Discussion (0 comments)

to join the discussion

Community Discussion

No discussions yet. Be the first to ask!

5
Question

Freeman, a single individual, reported the following income in the current year: Guaranteed payment from services rendered to a partnership $50,000 Ordinary income from a S corporation $20,000 What amount of Freeman's income is subject to self-employment tax?

Options
A

$0

B

$20,000

C

$50,000

D

$70,000

Discussion (0 comments)

to join the discussion

Community Discussion

No discussions yet. Be the first to ask!

Finish Practice?

Are you sure you want to finish? This will end your practice session.