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 Balance 2021 2022 2023 2024 2025 2026 2027 26,500 26,5ee 26,500 26,500 26,500 26,500 26,500 22,167 21,734 21,257 20,733 20, 156 19,522 26,500 4,333 4,766 5,243 5,767 6,344 6,978 Outstanding Balance 248,170 221,670 217,337 212,571 207,328 201, 561 195, 217 188, 238 2038 2039 2040 26,500 26,500 26,500 6,590 4,599 2,489 19,910 21,981 24,891 45,999 24,089 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? | | Lease liability Right-of-use asset Lease term Effective annual interest rate years 4. 996 5. Total of lease payments Total effective interest expense 6