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 233,828 2021 23,500 23,500 210,328 2022 23,500 18,930 4,570 205,758 2023 23,500 18,518 4,982 200,776 2024 23,500 18,070 5,430 195,346 2025 23,500 17,581 5,919 189,427 2026 23,500 17,048 6,452 182,975 2027 23,500 16,468 7,032 175,943 2038 23,500 5,354 18,146 41,340 2039 23,500 3,721 19,779 21,561 2040 23,500 1,940 21,560 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. 4. 5. 6. Lease liability Right-of-use asset Lease term Effective annual interest rate Total of lease payments Total effective interest expense years %