Help Sav 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 t the Equipment Leasing's lease amortization schedule appear below here is no purchase option or guarantee of a residual value by Majestic. Portions of an. 1 Payments Effective Decrease in Outstandin nterest Balance Balance 187,298 167,298 164,028 160, 431 156, 474 152, 122 147,334 142,067 2018 20,000 2018 2019 20,000 2020 20,000 2021 20,000 2022 20,000 2023 20,000 3,270 3,597 3,957 4,353 ,709 5,267 20,000 16,730 16, 403 16,043 15,647 15,212 T4,733 20,000 2035 2036 2037 20,000 20,000 20,000 ,974 15, 026 3, 471 1,818 34,711 18,182 16,529 18,182 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? 5. What is the total amount of lease payments? 6. What is the total effective interest expense recorded over the term of the lease? e to search