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 Interest Balance Outstanding Jan. 1 Payments Balance 191,981 20,500 20,500 2021 2022 171,481 20,500 17,148 3,352 168, 129 2023 20,500 16,813 3,687 164,442 2024 20,500 16,444 4,056 160,386 2025 20,500 16,039 4,461 155,925 2026 20,500 15,592 4,908 151,017 2027 20,500 15,102 5,398 145,619 2038 20,500 5,098 15,402 35,579 2039 20,500 3,558 16,942 18,637 2040 20,500 1,864 18,636 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