Below are the liabilities of a firm:

First mortgage $($use fixed assets as collateral$)$: $8$ million.

Second mortgage: $1$ million.

Notes payable $($to banks$)$: $3$ million.

Accounts payable: $2$ million.

Subordinated debentures: $1$ million

Fixed assets can be sold at $$5$ million.

Funds available for distribution to general creditors are $4$ million.

What is the distribution of notes payable to banks?

$$1\mathrm{.}8$ million

$$2\mathrm{.}0$ million

$$1\mathrm{.}6$ million

$$1\mathrm{.}3$ million