# meet_ex5

Exhibit 5: Amortization of Bond Discount Using the Interest Method
 \$400,000 of 9%, five-year bonds (semi-annual interest payments) sold to yield 10% at January 1, 2001. Selling price is calculated as follows: Present value of \$400,000 in 5 years \$400,000 0.61391 \$245,564.00 Present value of interest payments \$18,000 7.72173 \$138,991.14 \$384,555.14 Date Cash payment Interest expense Discount amortization Carrying value of bonds January 1, 01    \$384,555.14 July 1, 01 \$18,000.00 \$19,227.76 \$1,227.76 \$385,782.90 January 1, 02 \$18,000.00 \$19,289.14 \$1,289.14 \$387,072.04 July 1, 02 \$18,000.00 \$19,353.60 \$1,353.60 \$388,425.64 January 1, 03 \$18,000.00 \$19,421.28 \$1,421.28 \$389,846.93 July 1, 03 \$18,000.00 \$19,492.35 \$1,492.35 \$391,339.27 January 1, 04 \$18,000.00 \$19,566.96 \$1,566.96 \$392,906.24 July 1, 04 \$18,000.00 \$19,645.31 \$1,645.31 \$394,551.55 January 1, 05 \$18,000.00 \$19,727.58 \$1,727.58 \$396,279.13 July 1, 05 \$18,000.00 \$19,813.96 \$1,813.96 \$398,093.08 January 1, 06 \$18,000.00 \$19,906.92* \$1,906.92 \$400,000.00 *\$2.27 rounding error

SPONSORED REPORT

## Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.

QUIZ

## News quiz: IRS warning on cyberattacks and a change in pension rules

Once again, the IRS sounds the alarm about a threat from cyberthieves. See how much you know about this and other recent news with this short quiz.

CHECKLIST

## Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.