AP 20- (Permanent Establishments) A U.S. manufacturer of furniture is considering entering the Canadian market. The company will use one of the following alternatives to expand into Canada:

A. Direct sales to wholesalers by full-time salespeople who report to a sales ofce in each of three Canadian provinces. The sales ofces will coordinate marketing and shipping of prod-ucts from two warehouses located in Canada. However, formal approval of contracts will be administered in the U.S. head ofce. B. The sales ofces described in Part A would be independent proft centres with regional credit managers. The two warehouses from which orders are flled will be near the sales ofces. C. Company online sales would be expanded to include shipping to Canada.

Required: For each market expansion alternative, determine whether or not the U.S. manufac-turer will be considered to have a permanent establishment in Canada. Justify your conclusion and identify any other information required in support of your position.