NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2007
company. The Trust's violation of this limitation could result in the loss of its status as a regulated investment
company, thereby subjecting all of its net income and capital gains to corporate taxes prior to distribution to its
shareholders. The Trust, from time-to-time, identifies investment opportunities in the securities of entities that
could cause such trade or business income to be allocable to the Trust. The MMCI Subsidiary Trust (described
in Footnote 1, above) was formed in order to allow investment in such securities without adversely affecting the
Trust's status as a regulated investment company.
The MMCI Subsidiary Trust is not taxed as a regulated investment company. Accordingly, prior to the Trust
receiving any distributions from the MMCI Subsidiary Trust, all of the MMCI Subsidiary Trust's taxable income
and realized gains, including non-qualified income and realized gains, is subject to taxation at prevailing corporate
tax rates. For the year ended December 31, 2007, the MMCI Subsidiary Trust has accrued income tax expense
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of the existing assets and liabilities and their respective tax basis.
As of December 31, 2007, the MMCI Subsidiary Trust has a deferred tax asset of $216,497 for which a full
valuation reserve has been recorded. No future tax benefit is expected to be realized from this asset as of
December 31, 2007. The MMCI Subsidiary Trust has recorded a deferred income tax benefit in the current year
in the amount of $651,017 resulting from the decrease to zero of the deferred tax liability at December 31, 2006.
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48,
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES -- AN INTERPRETATION OF FASB
STATEMENT NO. 109 ("FIN 48"). Management has analyzed