On January 1, 2018, Majestic Mantles leased a lathe from Equipment Leasing under a nance 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: Effective Decrease in Outstanding Jan. 1 Payments Interest Balance Balance 2018 201,346 2018 21,500 21,500 179,846 2019 21,500 17,985 3,515 176,331 2020 21,500 17,633 3,867 172,464 2021 21,500 17,246 4,254 168,210 2022 21,500 16,321 4,679 163,531 2023 21,500 16,353 5,147 153,334 2024 21,500 15,333 5,662 152,723 2035 21,500 5,347 16,153 37,315 2036 21,500 3,732 17,763 13,547 2037 21,500 1,955 19,547 0 Required: 1. What is Majestic's lease liability at the beginning of the lease (after the rst payment}? 1 What amount would Majestic record as a rightofuse asset? 3. What is the lease term in years? 4. What is the effective annual interest rate? {Round your percentage answers to 1 decimal place.) 5. What is the total amount of lease payments? 6. What is the total effective interest expense recorded over the term of the lease? Lease liability.r Rightofuse asset Lease term Effective annual interest rate Total of lease payments Total effective interest expense