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 283,578 2021 28,500 28,500 255,078 2022 28,500 22,957 5,543 249,535 2023 28,500 22,458 6,042 243,493 2024 28,500 21,914 6,586 236,907 2025 28,500 21,322 7,178 229,729 2026 28,500 20,676 7,824 221,905 2027 28,500 19,971 8,529 213,376 2038 28,500 6,493 22,007 50,133 2039 28,500 4,512 23,988 26,146 2040 28,500 2,353 26,147 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?