Item11

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Item 11

Slush Corporation has two bonds outstanding, each with a face value of $2.2 million. Bond A is secured on the companys head office building; bond B is unsecured. Slush has suffered a severe downturn in demand. Its head office building is worth $1.02 million, but its remaining assets are now worth only $2 million. If the company defaults, what payoff can the holders of bond B expect?

Note: Enter your answer in dollars, not in millions. Round your answer to the nearest whole dollar amount.