On January $1,2024,$ 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 Leasing$$s lease amortization schedule appear below:

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

$2024$ $ $175,000$

$2024$ $ $12,000$ $ $12,000$ $ $163,000$

$2025$ $ $12,000$ $ $7,335$ $ $4,665$ $ $158,335$

$2026$ $ $12,000$ $ $7,125$ $ $4,875$ $ $153,460$

$2027$ $ $12,000$ $ $6,906$ $ $5,094$ $ $148,366$

$2028$ $ $12,000$ $ $6,676$ $ $5,324$ $ $143,042$

$2029$ $ $12,000$ $ $6,437$ $ $5,563$ $ $137,479$

$$

$$

$$

$2041$ $ $12,000$ $ $2,566$ $ $9,434$ $ $47,581$

$2042$ $ $12,000$ $ $2,141$ $ $9,859$ $ $37,722$

$2043$ $ $12,000$ $ $1,697$ $ $10,303$ $ $27,419$

$2044$ $ $28,653$ $ $1,234$ $ $27,419$ $ $0$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

What is the lease term in years?

What is the asset$$s residual value expected at the end of the lease term?

What is the effective annual interest rate?

Note: Enter your answer as a percent rounded to $1$ decimal place.

What is the total amount of lease payments for United?

What is the total amount of lease payments for NIC?

What is United$$s net investment at the beginning of the lease $($after the first payment$)?$

What is United$$s total effective interest revenue recorded over the term of the lease?

What amount would NIC record as a right$-$of$-$use asset at the beginning of the lease?

Note: Round your answers to nearest whole dollar.