Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 49

Domer Corporation is preparing to issue a relatively small amount of securities and does not want to go the trouble and expense of filing a registration statement with the SEC.Company officials hope to be exempt under provisions of Regulation A.These officials want to be certain that they meet these provisions precisely so that no later legal problems arise.
Required
Go to the website www.scc.gov and select "Corporate Finance under Divisions." Then select the link, for "Statutes, Rules, and Forms," followed by the "Rules, Regulations, and Schedules" link.Based on the information provided for regulation A (click on "General Rules and Regulations, Securities Act of 1933"), prepare a report for Domer corporation officials as to the requirements for exemption and advise as to the maximum amount of capital that may be raised through such inssuance.Assuming that Domer Corporation is a development stage company, revise the report.Note specifically regulation $230.251.