On July 1, year 1, Cobb Company issued 9% bonds in the face amount of $ 1,000,000 that mature in 10 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:
a. $ 52,810
b. $ 57,100
c. $ 48,800
d. $ 43,000