(Answered) Question - assume a legal entitys capital structure

Accounting

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)?

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