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 Outstanding Balance Balance 297,874 2021 24,500 24,500 273,374 2022 24,500 16,402 8,098 265,276 2023 24,500 15,917 8,583 256,693 2024 24,500 15,402 9,098 247,595 2025 24,500 14,856 9,644 237,951 2026 24,500 14,277 10,223 227,727 2027 24,500 13,664 10,836 216,891 2038 24,500 3,929 20,571 44,919 2039 24,500 2,695 21,805 23,114 2040 24,500 1,387 23,113 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. Lease liability 2. Right-of-use asset 3. Lease term years 4. Effective annual interest rate % 5. Total of lease payments 6. Total effective interest expense