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 208,952 2021 21,000 21,000 187,952 2022 21,000 16,916 4,084 183,868 2023 21,000 16,548 4,452 179,416 2024 21,000 16,147 4,853 174,563 2025 21,000 15,711 5,289 169,274 2026 21,000 15,235 5,765 163,509 2027 21,000 14,716 6,284 157,224 2038 21,000 4,784 16,216 36,940 2039 21,000 3,325 17,675 19,264 2040 21,000 1,734 19,266 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. Lease liability Right-of-use asset Lease term years 4. Effective annual interest rate % 5. Total of lease payments 6. Total effective interest expense