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 307,504 2021 29,000 29,000 278,504 2022 29,000 22,280 6,720 271,784 2023 29,000 21,743 7,257 264,527 2024 29,000 21,162 7,838 256,689 2025 29,000 20,535 8,465 248,224 2026 29,000 19,858 9,142 239,082 2027 29,000 19,127 9,873 229,209 2038 29,000 5,979 23,021 51,713 2039 29,000 4,137 24,863 26,850 2040 29,000 2,148 26,852 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