On January 1, 2018, 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 Leasings lease amortization schedule appear below: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Jan. 1	Payments		Effective Interest		Decrease in Balance		Outstanding Balance
2018							162,001
2018	14,500				14,500		147,501
2019	14,500		11,800		2,700		144,801
2020	14,500		11,584		2,916		141,885
2021	14,500		11,351		3,149		138,736
2022	14,500		11,099		3,401		135,335
2023	14,500		10,827		3,673		131,662
2035	14,500		5,250		9,250		56,380
2036	14,500		4,510		9,990		46,390
2037	14,500		3,711		10,789		35,601
2038	38,449		2,848		35,601		0

Required: 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.) 3. What is the effective annual interest rate? (Round your percentage answer to 1 decimal place.) 4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.) 5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.) 6. What is United's net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) 7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar.) 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest whole dollar.) 1. Lease term years Asset's residual value 2 % Effective annual interest rate 3 4. Lease payments for United Lease payments for NIC 6. 5 Net investment Total effective interest revenue 7 8 Right-of-use asset