CPA QUESTION Pace Corp. previously issued 300,000 shares of its common stock. The shares are now actively traded on a national securities exchange. The original offering was exempt from registration under the Securities Act of 1933.

Pace has $2.5 million in assets and 425 shareholders.

With regard to the Securities Exchange Act of 1934, Pace is:

a. Required to file a registration statement because its assets exceed $2 million in value

b. Required to file a registration statement even though it has fewer than 500 shareholders

c. Not required to file a registration statement because the original offering of its stock was exempt from registration

d. Not required to file a registration statement unless insiders own at least 5 percent of its outstanding shares of stock