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: Effective Decrease in Outstanding Jan. 1 Payments Interest Balance Balance 228,853 2021 23,000 23,000 205,853 2022 23,000 18,527 4,473 201,380 2023 23,000 18,124 4,876 196,504 2024 23,000 17,685 5,315 191,189 2025 23,000 17,207 5,793 185,396 2026 23,000 16,686 6,314 179,082 2027 23,000 16,117 6,883 172,199 2038 23,000 5,240 17,760 40,461 2039 23,000 3,641 19,359 21,103 2040 23,000 1,899 21,101 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? Right-of-use asset Lease term 1. Lease liability 2. 3. 4. 5. 6. Effective annual interest rate Total of lease payments Total effective interest expense years %