On January 1, 2018, 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 Leasings lease amortization schedule appear below: Jan. 1 Payments Effective Interest Decrease in Balance Outstanding Balance 228,853 2018 23,000 0 23,000 205,853 2018 23,000 18,527 4,473 201,380 2019 23,000 18,124 4,876 196,504 2020 23,000 17,685 5,315 191,189 2021 23,000 17,207 5,793 152,122 2022 23,000 13,691 9,309 142,813 2023 23,000 12,853 10,147 132,666 2035 23,000 5,240 17,760 40,460 2036 23,000 3,641 19,359 21,101 2037 23,000 1,899 21,101 0 Required: 1. What is Majestics lease liability at the beginning of the lease (after the first payment)? 2. What amount would Majestic record as a right-of-use 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?