Item9 1 points eBook Print References Check my work Check My Work button is now enabled2Item 9 Item 9 1 points On January 1, 2018, 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 Leasings 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 Effective Interest Decrease in Balance Outstanding Balance 2018 264,950 2018 31,000 31,000 233,950 2019 31,000 28,074 2,926 231,024 2020 31,000 27,723 3,277 227,747 2021 31,000 27,330 3,670 224,077 2022 31,000 26,889 4,111 219,966 2023 31,000 26,396 4,604 215,362 2035 31,000 13,062 17,938 90,915 2036 31,000 10,910 20,090 70,825 2037 31,000 8,499 22,501 48,324 2038 54,123 5,799 48,324 0 Required: 1. What is the lease term in years? 2. What is the assets 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 Uniteds net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) 7. What is Uniteds total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar.) 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.)