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 236,474 2021 26,000 26,000 210,474 2022 26,000 22,100 3,900 206,574 2023 26,000 21,690 4,310 202,264 2024 26,000 21,238 4,762 197,502 2025 26,000 20,738 5,262 192,240 2026 26,000 20,185 5,815 186,425 2027 26,000 19,575 6,425 179,999 2038 26,000 6,730 19,270 44,823 2039 26,000 4,706 21,294 23,529 2040 26,000 2,471 23,529 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?