Kentucky Tax Commission v. Fourth Avenue Amusement Co.

Opinion op the Court by

Judge Rees

Affirming.

The Fourth Avenue Amusement Company is a Kentucky corporation engaged in the business of operating motion picture theatres in Kentucky and Indiana. In 1936 it operated ten theatres in its own name, four in Kentucky and six in Indiana, and through a wholly owned subsidiary, the Western Indiana Theatres Corporation, an Indiana corporation, operated three theatres in Indiana. Prior to 1936 the Indiana corporation operated at a loss, and the parent company made advancements to it to cover the losses. In 1936 the Indiana corporation realized a profit and…