Question - Assume a Legal Entity's capital structure consists of the following accounts:
Short-term note payable $ 100,000
Long-term note payable. 400,000 Mandatorily redeemable preferred stock. 150,000
Common stock. 40,000
Additional paid-in capital. 100,000
Retained earnings. 20,000 Total liabilities and equity$810,000
What is the maximum amount of expected losses that the Legal Entity can expect to sustain without being considered a variable interest entity (VIE)?