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 278,603 2021 28,000 28,000 250,603 2022 28,000 22,554 5,446 245,157 2023 28,000 22,064 5,936 239,221 2024 28,000 21,530 6,470 232,751 2025 28,000 20,948 7,052 225,699 2026 28,000 20,313 7,687 218,012 2027 28,000 19,621 8,379 209,633 2038 28,000 6,379 21,621 49,254 2039 28,000 4,433 23,567 25,687 2040 28,000 2,312 25,688 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?