Determination of whether a legal entity is a variable interest entity Assume a Legal Entity's capital structure consists of the following accounts: a. What is the maximum amount of expected losses that the Legal Entity can expect to sustain without being considered a variable interest entity (VIE)? 05420,000 0$290,000 $165,000 0587,500 b. What is the maximum amount of expected losses that the Legal Entity can expect to sustain if the lender of the long term note payable is the sole shareholder of the Legal Entity? 0$290,000 05420,000 0$87,500 0565,000 requires convertible debt to be classified as a liability for financial reporting purposes.) 0$87,500 0$165,000 $290,000 $420,000