A company is selling $50 million in new bonds. ML Inc. the managing underwriter has 40 per cent participation in the syndicate it has formed. The syndicate will buy the bonds from the company at $986 per bond. And sell them to the public for $996 each. The selling concession will be $5 per bond. The issue will generate administrative expenses of $100,000. ML requires a manager's fee of 12 percent of the gross spread. How much will ML receive if the issue is a sell out?