Merivale is a U$.$S$.$ corporation with operations throughout the United States. In addition to its U$.$S$.$ operations, it has a sales office in Calgary. Canadian employees who work out of this sales office take and approve orders for the company's products from Canadian customers. These orders are filled from a warehouse in Montana, USA.

Which statement is correct?

Question $2$Answer

a$.$

Merivale is not subject to Canadian income tax because it is not incorporated in Canada.

b$.$

Merivale is not subject to Canadian income tax because the orders are not filled from a Canadian warehouse.

c$.$

Merivale is not subject to Canadian income tax because the mind and management of the company is not in Canada.

d$.$

Merivale is subject to Canadian income tax on the income that is earned by the Calgary office.