On January 1, 2021. Majestic Manties leased a fathe 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 Leasing's lease amortization schedule appear below Jan 1 Payments 2021 2023 2023 2024 2025 2026 2022 5,042 Effective Decrease in Outstanding Interest Balance Halance 283,578 28,500 255,078 22,957 5,543 249,535 22,458 243,493 21,914 6,586 236,907 21,322 7,178 229,729 20,676 7,824 221,905 19,971 3,529 213,376 20,5ee 25,50 28,500 28,500 20,500 28,500 28,500 2038 2039 2040 20, 500 28,500 28,500 6,493 4,512 2,350 22,007 23,988 26,147 50,133 26,146 Required: 1. What is Majestic's lease liability after the first lease payment?? 2. What amount would Majestic record as a night-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? 1 1 2 3 4 5 Lease ability Right-of-use asset Lease term Effective annual interest rate Total of lease payments Total effective interest expense years % 16