CH 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 Effective Decrease in Outstanding Jan. 1 Payments Interest Balance Balance 2021 2021 192,501 20,000 20,000 172,501 2022 20,000 17,250 2,750 169,751 2023 29,000 16,975 3,025 166,726 2024 20,000 16,673 3,327 163,399 2025 20.000 16,340 3,660 159,739 2026 20,000 15,974 4.626 155,713 2038 2029 2040 2041 20,000 20,000 20,000 35,000 7,364 6, 101 4,711 3,182 12,636 11,899 15,289 31,818 61,006 47, 107 31,818 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? 3. What is the effective annual interest rate? 4. What is the total amount of lease payments for United? 5. What is the total amount of lease payments for NIC? 6. What is United's net investment at the beginning of the lease (after the first payment)? 7. What is United's total effective interest revenue recorded over the term of the lease? 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? years % 1. Lease term 2 Asset's residual value 3. Effective annual interest rate 4. Lease payments for United 5. Lease payments for NIC 6. Net investment 7 Total effective interest revenue 8 Right-of-use asset