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AICPA CPA-Regulation Dumps - Pass CPA Regulation Exam in First Attempt 2026
The AICPA CPA-Regulation exam is part of the Certified Public Accountant certification and focuses on the regulation knowledge expected from accounting professionals. It is designed for candidates who want to demonstrate a strong understanding of tax, business law, ethics, and related regulatory concepts. Passing this exam is an important step for anyone pursuing the CPA credential and building credibility in the accounting profession. A solid preparation plan can help you approach the exam with confidence and improve your chances of success.
| # | Exam Topics | Sub-Topics | Approximate Weightage (%) |
|---|---|---|---|
| 1 | Area I - Ethics, Professional Responsibilities and Federal Tax Procedures | Ethical standards, professional responsibilities, tax procedures, filing and compliance rules | 15% |
| 2 | Area II - Business Law | Contracts, agency, debtor-creditor relationships, business structure rules | 20% |
| 3 | Area III - Federal Taxation of Property Transactions | Asset basis, gains and losses, like-kind exchanges, property dispositions | 20% |
| 4 | Area IV - Federal Taxation of Individuals | Individual income tax, deductions, credits, tax preparation, planning strategies | 25% |
| 5 | Area V - Federal Taxation of Entities | Partnerships, corporations, entity taxation, tax preparation, planning strategies | 20% |
The exam tests your ability to apply regulatory and tax concepts to practical situations, not just memorize definitions. Candidates need a clear understanding of rules, procedures, and business law principles, along with the ability to analyze tax scenarios and choose the correct response under exam conditions.
How QA4Exam.com Helps You Pass
QA4Exam.com provides CPA-Regulation Exam PDF materials with actual questions and answers, along with an Online Practice Test designed to mirror the exam experience. These resources help you study with up-to-date questions, verified answers, and a format that supports real exam simulation. The practice test also helps you improve time management and get comfortable with question patterns before exam day. With focused preparation, you can strengthen weak areas and work toward passing the AICPA CPA-Regulation exam on your first attempt.
FAQ
It is the regulation section of the Certified Public Accountant certification and covers ethics, business law, and federal taxation topics.
It can be challenging because it combines legal, ethical, and tax concepts, so candidates need both understanding and application skills.
Braindumps alone are not the best approach. They are most effective when used with study and review so you understand the concepts behind each question.
Hands-on experience can help, but the exam mainly measures your knowledge of regulation topics and your ability to apply them to exam questions.
QA4Exam.com exam PDF and Online Practice Test are strong preparation tools, and many candidates use them to reinforce study and test readiness.
They help you practice real exam style questions, check verified answers, and improve time management so you can enter the exam with more confidence.
QA4Exam.com offers an Exam PDF with questions and answers and an Online Practice Test for interactive exam simulation.
The questions for CPA-Regulation were last updated on Sep 3, 2026.
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Gibson purchased stock with a fair market value of $14,000 from Gibson's adult child for $12,000. The child's cost basis in the stock at the date of sale was $16,000. Gibson sold the same stock to an unrelated party for $18,000. What is Gibson's recognized gain from the sale?
Choice 'b' is correct. Losses are disallowed on most related party sales transactions even if they were made at an arm's length (FMV) price. The basis (and related gain or loss) of the (second) buying relative depends on whether the second relative's resale price is higher, lower, or between the first relative's basis and the lower selling price to the second relative. In this case, the $4,000 capital loss on the sale by Gibson's adult child to Gibson [$12,000 SP - $16,000 Basis] is disallowed. Gibson's basis is determined by his selling price to a third party. In this case, the selling price is $18,000, which is HIGHER than the original basis of Gibson's adult child. Gibson's basis in the stock is, therefore, his adult child's basis of $16,000. Gibson's recognized basis is calculated as follows:
Choice 'a' is incorrect. There would be a zero gain or loss if the selling price were between the adult child's basis and Gibson's purchase price, but this is not the case in the facts.
Choice 'c' is incorrect. This answer option uses the fair market value of the stock at the date of purchase as the basis. As is discussed above, the rules do not provide for this treatment. [$18,000 SP - $14,000 FMV = $4,000]
Choice 'd' is incorrect. This would be the answer if the basis were Gibson's purchase price of $12,000; however, because the stock sold for more than Gibson's child's basis and the child had a disallowed loss on the sale to Gibson, Gibson is allowed to use his child's original basis of $16,000 as his basis for the stock on the date of the second sale. [$18,000 SP - $12,000 PP = $6,000]
Greller owns 100 shares of Arden Corp., a publicly-traded company, which Greller purchased on January 1, 2001, for $10,000. On January 1, 2003, Arden declared a 2-for-1 stock split when the fair market value (FMV) of the stock was $120 per share. Immediately following the split, the FMV of Arden stock was $62 per share. On February 1, 2003, Greller had his broker specifically sell the 100 shares of Arden stock received in the split when the FMV of the stock was $65 per share. What is the basis of the 100 shares of Arden sold?
Choice 'a' is correct. The receipt of a nontaxable stock dividend will require the shareholder to spread the basis of his original share over both the original shares and the new shares received resulting in the same total basis, but a lower basis per share of stock held. Therefore, Greller total basis remains the same, $10,000, but is now split between 200 shares (a 2-for-1 split and he originally owned 100 shares).
Therefore, his basis per share goes from $100/share ($10,000/100) to $50/share ($10,000/200).
Consequently, his basis in 100 share is 100 x $50 = $5,000.
Choices 'b', 'c', and 'd' are incorrect per the above Explanation: .
Porter was unemployed for part of the year. Porter received $35,000 of wages, $4,000 from a state unemployment compensation plan, and $2,000 from his former employer's company-paid supplemental unemployment benefit plan. What is the amount of Porter's gross income?
RULE: Gross income includes all income unless it is specifically excluded in the tax code.
Choice 'd' is correct. Wages and all unemployment compensation are not excluded from being taxable; therefore, there are included in the taxpayer's gross income for tax purposes.
Choice 'a' is incorrect. All forms of unemployment compensation are included as part of gross income. Choice 'b' is incorrect. The $4,000 of state unemployment compensation received is included as part of gross income.
Choice 'c' is incorrect. The $2,000 of his former employer's company-paid supplemental unemployment benefit plan is included as part of gross income.
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.
'A' is correct. $0. Life insurance proceeds received by reason of the death of the insured are not taxable income to the recipient.
On February 1, 1993, Hall learned that he was bequeathed 500 shares of common stock under his father's will. Hall's father had paid $2,500 for the stock in 1990. Fair market value of the stock on
February 1, 1993, the date of his father's death, was $4,000 and had increased to $5,500 six months later. The executor of the estate elected the alternate valuation date for estate tax purposes. Hall sold the stock for $4,500 on June 1, 1993, the date that the executor distributed the stock to him. How much income should Hall include in his 1993 individual income tax return for the inheritance of the 500 shares of stock, which he received from his father's estate?
Choice 'd' is correct. There is no income tax on the value of inherited property. The gain on the sale is the difference between the sales price of $4,500 and Hall's basis. Hall's basis is the alternate valuation elected by the executor. This is the value 6 months after date of death or date distributed if before 6 months. The property was distributed 4 months after death and the value that day ($4,500) is used for the basis. $4,500 $4,500 = 0.
Choice 'a' is incorrect. There is no income tax on the value of inherited property.
Choice 'b' is incorrect. This is the basis of the stock if the alternate date had not been used. Heirs are not taxed on inheritances. The income or loss results when inherited property is sold.
Choice 'c' is incorrect. There is no income tax on the value of inherited property. The gain on the sale is the difference between the sales price of $4,500 and Hall's basis. Hall's basis is the alternate valuation elected by the executor.
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