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1-Assume a Legal Entity's capital structure consists of the following accounts: Short-term note payable $300,000 Long-term note payable 440,000 Mandatorily redeemable preferred stock 325,000 Common
1-Assume a Legal Entity's capital structure consists of the following accounts: Short-term note payable $300,000 Long-term note payable 440,000 Mandatorily redeemable preferred stock 325,000 Common stock 70,000 Additional paid-in capital 385,000 Retained earnings 550,000 Total liabilities and equity $1,790,000 Required: 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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