Check my work On January 1, 2018, Majestic Mantles leased a lathe from Equipment 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 Majestic. Portions of the Equipment Leasing's lease amortization schedule appear below Effective Decrease in Outstanding Interes Jan.1 Payments 2018 2018 2019 2020 2021 2022 2023 23,000 23,000 23,000 23,000 23,000 23,000 23,000 18,527 18,124 17,685 17,207 13,691 12,853 23,000 4,473 4,876 5,315 5,793 9,309 10,147 228,853 205,853 201,380 196,504 191,189 152,122 142, 813 132,666 2035 23,000 2036 203723,000 5,24017,760 3,641 1,899 21,101 40,460 21,101 23,000 19,359 Required 1. What is Majestic's lease liability at the beginning of the lease (after the first payment)? 2. What amount would Majestic record as a right-of-use asset? 3. What is the lease term in years? 4. What is the effective annual interest rate? (Round your percentage answers to 1 decimal place.) 5. What is the total amount of lease payments? 6. What is the total effective interest expense recorded over the term of the lease? Prev8 of 10 Next >