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 Leasings lease amortization schedule appear below:

Jan. 1	Payments		Effective Interest		Decrease in Balance		Outstanding Balance
							201,346
2021	21,500				21,500		179,846
2022	21,500		17,985		3,515		176,331
2023	21,500		17,633		3,867		172,464
2024	21,500		17,246		4,254		168,210
2025	21,500		16,821		4,679		163,531
2026	21,500		16,353		5,147		158,384
2027	21,500		15,838		5,662		152,723
2038	21,500		5,347		16,153		37,315
2039	21,500		3,731		17,769		19,547
2040	21,500		1,955		19,545		0

Required: 1. What is Majestics 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?