Blockchain Inc has debt with a promised payment of $400M in one year. This debt's market value is $350M today and the cost of debt is 6%. Blockchain's (free) cash flows in a year are $720M with a probability 0.8 and $255M with probability 0.2. There will be no more cash flows. The cost of equity for the unlevered firm is 10% and the corporate tax rate is 40%. Corporate taxes is the only market imperfection.

Assume for this question the existence of a bankruptcy cost, which is $106M conditional on the default state in a year. Assuming that the cost of debt is the correct discount rate for the bankruptcy cost, what would be the value of debt and the value of the levered firm?