On January $1,2024,$ 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:

January $1$ Payments Effective Interest Decrease in Balance Outstanding Balance

$ $278,603$

$2024$ $ $28,000$ $ $28,000$ $ $250,603$

$2025$ $ $28,000$ $ $22,554$ $ $5,446$ $ $245,157$

$2026$ $ $28,000$ $ $22,064$ $ $5,936$ $ $239,221$

$2027$ $ $28,000$ $ $21,530$ $ $6,470$ $ $232,751$

$2028$ $ $28,000$ $ $20,948$ $ $7,052$ $ $225,699$

$2029$ $ $28,000$ $ $20,313$ $ $7,687$ $ $218,012$

$2030$ $ $28,000$ $ $19,621$ $ $8,379$ $ $209,633$

$$

$$

$$

$2041$ $ $28,000$ $ $6,379$ $ $21,621$ $ $49,254$

$2042$ $ $28,000$ $ $4,433$ $ $23,567$ $ $25,687$

$2043$ $ $28,000$ $ $2,312$ $ $25,688$ $ $0$

Required:

What is Majestic$$s lease liability at the beginning of the lease $($after the first payment$)?$

What amount would Majestic record as a right$-$of$-$use asset?

What is the lease term in years?

What is the effective annual interest rate?

Note: Round your percentage answer to $1$ decimal place.

What is the total amount of lease payments?

What is the total effective interest expense recorded over the term of the lease?