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 optlon or guarantee of a residual value by Majestic. Portions of

the Equipment Leasing's lease amortization schedule appear below:

Required:

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?

What is the lease term in years?

What is the effectlve annual interest rate?

What is the total amount of lease payments?

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