What is the maximum amount of expected losses

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Question - Assume a Legal Entity's capital structure consists of the following accounts:

Short-term note payable $ 200,000

Long-term note payable 500,000

Mandatorily redeemable preferred stock 350,000

Common stock 60,000

Additional paid-in capital 400,000

Retained earnings 280,000

Total liabilities and equity $1,790,000

What is the maximum amount of expected losses that the Legal Entity can expect to sustain without being considered a variable interest entity (VIE)?

Reference no: EM132140752

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