How many sections are on the CPA exam?

The CPA exam has 4 required sections: 3 core sections (FAR — Financial Accounting, AUD — Auditing, REG — Regulation) and 1 discipline section of your choice (BAR, ISC, or TCP).

What is the passing score for the CPA exam?

A score of 75 (on a scale of 0–99) is required to pass each CPA exam section.

How long do I have to pass all CPA exam sections?

Candidates have 30 months from the date they pass their first section to pass all remaining sections.

How many questions are in each CPA exam section?

Each section contains approximately 72–78 multiple choice questions plus task-based simulations (TBS). The exact number varies by section.

CPA TCP Practice Exam 3 — Free 68-Question CPA Practice Test

Q01In Year 1, an executive is granted 1,000 Incentive Stock Options (ISOs) with an exercise price of $10 per share when ...Medium

Q02On January 1, Year 1, a corporation lends $500,000 to a shareholder interest-free. The loan is a demand loan. The app...Medium

Q03A taxpayer has regular taxable income of $200,000 in Year 1. They claimed a standard deduction of $29,200 (assume thi...Medium

Q04A U.S. citizen accepts a permanent assignment in France on January 1, Year 1. They are present in France for all 365 ...Medium

Q05A 12-year-old child has $5,000 of interest income and no earned income in Year 1. Assume the standard deduction for a...Hard

Q06A taxpayer with an AGI of $200,000 wants to make a charitable contribution to a public charity. They hold two assets:...Hard

Q07A taxpayer's Year 1 AGI was $160,000 and tax liability was $30,000. In Year 2, they expect an AGI of $200,000 and a t...Medium

Q08In Year 1, a taxpayer invests $50,000 cash in a partnership and signs a $40,000 nonrecourse note (secured only by the...Hard

Q09A taxpayer owns interests in three passive activities: A (Income $20,000), B (Loss $30,000), and C (Loss $10,000). Th...Medium

Q10A taxpayer sells their entire interest in a passive activity to an unrelated party in a fully taxable transaction. At...Medium

Q11In Year 1, a married couple agrees to gift split. One spouse gives $50,000 cash to their son. Assume the annual gift ...Medium

Q12A father gifts stock to his daughter. At the time of the gift, the father's adjusted basis is $20,000 and the FMV is ...Medium

Q13A wealthy client holds two assets: Asset A (Basis $100k, FMV $1M, high appreciation potential) and Asset B (Basis $90...Hard

Q14A taxpayer, age 45, is in the 24% tax bracket in Year 1 but expects to be in the 37% bracket during retirement. They ...Medium

Q15A taxpayer turns age 73 in Year 1. They have a Traditional IRA with a balance of $500,000 as of December 31, Year 0. ...Medium

Q16Which of the following is a tax advantage of a Section 529 Qualified Tuition Program compared to a Coverdell ESA?Easy

Q17A taxpayer in the 35% marginal tax bracket is comparing two bonds: 1. Corporate Bond yielding 6%. 2. Municip...Medium

Q18A taxpayer surrenders a life insurance policy for its cash value of $120,000. Total premiums paid were $80,000. The t...Medium

Q19A 50-year-old taxpayer has a High Deductible Health Plan (HDHP) for self-only coverage. Assume the maximum HSA contri...Medium

Q20A taxpayer has the following capital gains and losses in Year 1: - Short-term capital gain: $5,000 - Short-te...Medium

Q21A taxpayer sells 100 shares of TechCo stock for a loss of $5,000 on December 15, Year 1. On January 5, Year 2, the ta...Medium

Q22As part of a divorce settlement in Year 1, Spouse A transfers stock (Basis $10,000, FMV $50,000) to Spouse B. What is...Medium

Q23A taxpayer breeds dogs. In Year 1, the activity generates $5,000 revenue and $12,000 expenses. The activity has shown...Medium

Q24Shareholder A contributes property (Basis $20,000, FMV $50,000) to a C Corporation in exchange for 100% of the stock ...Medium

Q25A C Corporation distributes land to a shareholder as a nonliquidating distribution. The land has a basis of $40,000 a...Medium

Q26A C Corporation liquidates. It distributes asset X (Basis $100,000, FMV $80,000) to Shareholder A. What is the tax co...Medium

Q27LossCo, a C Corporation, has a $1,000,000 NOL carryforward. On January 1, Year 1, ProfitCo acquires 100% of LossCo's ...Hard

Q28Parent Co. and Sub Co. file a consolidated return. In Year 1, Parent sells land to Sub for $500,000 (Parent's basis $...Medium

Q29A U.S. corporation manufactures inventory in the U.S. and sells it in Japan with title passing in Japan. Under genera...Medium

Q30US Co owns 100% of Foreign Co (a CFC). Foreign Co earns $100,000 of interest income (Subpart F income) and has no oth...Medium

Q31An S Corporation shareholder has a stock basis of $10,000 at the beginning of Year 1. In Year 1, the S Corp reports:<...Medium

Q32An S Corp shareholder has Stock Basis $0 and Debt Basis $10,000 (loan to corp). In Year 1, the S Corp has an Ordinary...Hard

Q33An S Corporation (formerly a C Corp) has Accumulated E&P (AEP) of $20,000. At year-end, its Accumulated Adjustments A...Medium

Q34An S Corporation has $365,000 of non-separately stated income for Year 1. Shareholder A owned 100% of the stock from ...Medium

Q35A partner contributes property (Basis $30,000, FMV $100,000) subject to a $40,000 recourse liability to a partnership...Medium

Q36A partner with an outside basis of $50,000 receives a nonliquidating distribution of $20,000 cash and land (Basis to ...Medium

Q37A partner receives a liquidating distribution consisting of $10,000 cash and inventory (Basis $5,000, FMV $8,000). Th...Hard

Q38Partner A sells their 1/3 interest in a partnership to Buyer B for $100,000. The partnership has assets with a basis ...Hard

Q39A partner performs services for a partnership and receives a Guaranteed Payment of $20,000. The partnership has $50,0...Medium

Q40Partner A sells their partnership interest for $50,000. Their outside basis is $30,000. The partnership holds invento...Medium

Q41A trust has the following items in Year 1: - Interest Income: $10,000 - Dividends: $5,000 - Long-Term Cap...Medium

Q42Which of the following requires a trust to be classified as a 'Complex Trust' for a given tax year?Easy

Q43A grantor establishes a trust, retaining the power to revoke it. The trust earns $5,000 in interest and $10,000 in di...Medium

Q44A tax-exempt university operates a coffee shop open to the public. It generates $50,000 profit. It also earns $20,000...Medium

Q45Which of the following activities could jeopardize a §501(c)(3) organization's tax-exempt status?Easy

Q46A C Corporation owns 15% of Domestic Corp. It receives a $10,000 dividend. The C Corp's taxable income before the DRD...Medium

Q47A consultant expects to earn $200,000 net profit. They want to minimize Self-Employment (SE) tax. Which entity struct...Medium

Q48Two individuals form an entity. A contributes cash. B contributes appreciated property (Basis $10k, FMV $100k) for a ...Hard

Q49A C Corporation has accumulated earnings of $300,000. It is a service corporation (law firm). It has no specific busi...Medium

Q50An S Corporation (formerly C Corp) sells an asset in Year 2 for a $50,000 gain. At the time of S election (Year 1), t...Hard

Q51Shareholders owning 60% of an S Corporation's stock vote to revoke the S election on March 10, Year 1. They do not sp...Medium

Q52An S Corporation has substantial AAA and AEP. The shareholders have high basis. They want to distribute AEP to avoid ...Hard

Q53Partner A contributes Land (Basis $60,000, FMV $100,000) to a partnership. Two years later, the partnership sells the...Hard

Q54Partner A contributes property (FMV $100,000, Basis $40,000) to a partnership. One month later, the partnership distr...Medium

Q55A partnership makes a liquidating payment to a retiring general partner in a service partnership. The payment is for ...Hard

Q56Which entity type allows for a tax-free liquidation of the entity itself (assuming no cash > basis issues)?Medium

Q57A corporation operates in State A (tax rate 5%) and State B (tax rate 10%). It has $1,000,000 total income. Apportion...Hard

Q58In a like-kind exchange, Taxpayer gives up Real Estate (Basis $50,000, FMV $100,000) and receives Real Estate (FMV $9...Medium

Q59Taxpayer exchanges a building (FMV $500,000, Basis $200,000, Mortgage $100,000) for a new building (FMV $400,000). Th...Medium

Q60A warehouse (Basis $200,000) is destroyed by fire. Insurance pays $300,000. The taxpayer purchases a replacement ware...Medium

Q61In Year 5, a taxpayer has a §1231 gain of $20,000. In Year 1, they had a §1231 loss of $8,000 that was deducted as or...Medium

Q62Taxpayer sells a machine used in business for $12,000. Original cost was $10,000. Accumulated depreciation was $6,000...Medium

Q63Individual taxpayer sells an office building (held > 1 year) for $500,000. Original cost $400,000. Accumulated straig...Medium

Q64Taxpayer sells land (Basis $60,000) for $100,000. Terms: $20,000 cash in Year 1, and an $80,000 note payable in Year ...Medium

Q65A taxpayer sells stock (Basis $50,000) to their sister for $30,000 (FMV). The sister later sells the stock to an unre...Medium

Q66A cash-basis taxpayer loans $100,000 to their 100% owned accrual-basis corporation. The note requires interest to be ...Medium

Q67A single taxpayer sells §1244 small business stock for a loss of $60,000. They have no other capital transactions. Ho...Easy

Q68A single taxpayer sells their principal residence for a $400,000 gain. They lived in the home for 18 months due to a ...Medium

CPA TCP Practice Exam 3

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