Final answer:
The unamortized bond discount of Noble, Inc. on June 30, 2013, can be calculated by the effective-interest method. This process involves determining the interest expense based on the bonds' carrying amount and subtracting the actual interest paid to find the discount amortized each year. However, without an amortization schedule, the exact figure cannot be provided.
Step-by-step explanation:
To calculate Noble, Inc.'s unamortized bond discount at June 30, 2013, we need to use the effective-interest method of amortization. This approach spreads the discount or premium on bonds over the life of the bonds in such a way that it results in a constant rate of interest over the period. With a $610,000 bond discount and a 10% yield, the first step would be to calculate the annual interest payment and the amortization for each year.
For example, the bond discount on July 1, 2011, is $610,000, and the annual interest payment at 9% on the face amount of $10,000,000 is $900,000. Under the effective-interest method, in the first year, the interest expense recognized is 10% of the carrying amount of the bonds at the beginning of the period ($9,390,000), which amounts to $939,000. The difference of $39,000 ($939,000 - $900,000) is the amount of discount amortized in the first year. The unamortized discount after the first year is then $571,000 ($610,000 - $39,000).
Continuing this process for the subsequent years, you would arrive at the amount of unamortized bond discount at June 30, 2013. Without the bond amortization schedule or more details, we cannot provide the exact figure from the options listed (a. $528,100, b. $510,000, c. $488,000, d. $430,000). The actual fulfillment of this task would require a detailed amortization schedule showing the interest expense, the discount amortized each period, and the discount balance remaining.