On July 1, Year 1, Cobb Company issued 9% bonds in the face amount of $1,000,000 which mature in ten years. The bonds were issued for $939,000 to yield 10%, resulting in a bond discount of $61,000. Cobb uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30.
At June 30, Year 3, Cobb’s unamortized bond discount should be:
$52,810
$57,100
$48,800
$43,000