On January 1, 2021, 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 Leasing's lease amortization schedule appear below. Jan. 1 Payments Effective Interest Decrease in Balance 2021 2022 2023 2024 2025 2026 2027 27.000 27,000 27,000 27,000 27,000 27.000 27.000 21, 749 21, 276 20. 761 20.230 19,587 18,920 27.000 5, 251 5, 724 6.239 6. 800 7. 413 8. 080 Outstanding Balance 268, 653 241, 653 236.402 230, 678 224, 439 217.639 210.226 202. 146 2038 2039 2040 27.000 27,000 27,000 6, 151 4, 275 2, 229 20,849 22.725 24, 771 47.496 24.770 0 Required: 1. What is Majestic's lease liability after the first lease 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? 1 2 3 years Lease liability Right-of-use asset Lease term Effective annual interest rate Total of lease payments Total effective interest expense 4. 5. 6