25 2 25 points On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by NIC. Portions of the United Leasing's lease amortization schedule appear below: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Jan. 1 Payments Balance Effective Decrease in Outstanding Interest Balance 2021 155, 999 2021 15,000 15,000 140, 999 eBook 2022 15,000 12, 690 2,310 138, 689 2023 15,000 12, 482 2,518 136,171 Print 2024 15,000 12,255 2,745 133,426 2025 15,000 12,008 2,992 130, 434 References 2026 15,000 11,739 3,261 127, 173 2038 15,000 5,828 9,172 55, 535 2039 15,000 5,003 9,997 2040 15,000 4,103 10,897 145,588 34,691 2041 37,813 3,122 34,691 Required: 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.) 3. What is the effective annual interest rate? (Round your percentage answer to 1 decimal place.) 4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.) 5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.) 6. What is United's net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) Che 2 2041 37,813 3,122 34,691 0 Required: 25 points eBook Print References 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.) 3. What is the effective annual interest rate? (Round your percentage answer to 1 decimal place.) 4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.) 5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.) 6. What is United's net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) 7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dolla 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest whole dollar.) Lease term 2 Asset's residual value 23 years Effective annual interest rate % 4. Lease payments for United 5 Lease payments for NIC 7. 8 670 Net investment Total effective interest revenue Right-of-use asset D