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This confused me too, when I was doing level 1. The thing here to notice is “total assets” and “equity”.
Asset = Liability + Equity (or A = L + E ), the asset here refers to Total Asset therefore:
1,400 = Liability + 1,400 * 0.40
1,400 = Liability + 560
Liability = 840
The current liabilities is not the same liability in the A = L + E, it’s only a portion of the L.
Therefore, total liabilities to equity = 840 / 560
1.5