On January 1, 2016, National Insulation Corporation (NIC) leased office space under a capital lease. Lease payments are made annually. Title does not transfer to the lessee and there is no bargain purchase option. Portions of the lessee's lease amo1tization schedule appear below:

Jan. 1 2016	Payments	Effective Interest	Decrease in Balance	Outstanding Balance 192,501
2016	20,000		20,000	172,501
2017	20,000	17,250	2,750	169,751
2018	20,000	16,975	3,025	166,726
2019	20,000	16,673	3,327	163,399
2020	20,000	16,340	3,660	159,739
2021	20,000	15,974	4,026	155,713

2033	20,000	7,364	12,636	61,006
2034	20,000	6,101	13,899	47,107
2035	20,000	4,711	15,289	31,818
2036	35,000	3,182	31,818	0

Required:

1. What is NIC's lease liability at the inception of the lease (after the first payment)?

2. What amount would NIC record as a leased asset?

What is the lease term in years?

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

How much of the residual value is guaranteed by the lessee?

What is the effective annual interest rate?

What is the total amount of minimum lease payments?

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