3-Assume a Legal Entitys 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)?