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 Leasings lease amortization schedule appear below:

Jan. 1	Payments		Effective Interest		Decrease in Balance		Outstanding Balance
							283,578
2021	28,500				28,500		255,078
2022	28,500		22,957		5,543		249,535
2023	28,500		22,458		6,042		243,493
2024	28,500		21,914		6,586		236,907
2025	28,500		21,322		7,178		229,729
2026	28,500		20,676		7,824		221,905
2027	28,500		19,971		8,529		213,376
2038	28,500		6,493		22,007		50,133
2039	28,500		4,512		23,988		26,146
2040	28,500		2,353		26,147		0

Required: 1. What is Majestics 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?