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
							248,170
2021	26,500				26,500		221,670
2022	26,500		22,167		4,333		217,337
2023	26,500		21,734		4,766		212,571
2024	26,500		21,257		5,243		207,328
2025	26,500		20,733		5,767		201,561
2026	26,500		20,156		6,344		195,217
2027	26,500		19,522		6,978		188,238
2038	26,500		6,590		19,910		45,990
2039	26,500		4,599		21,901		24,089
2040	26,500		2,409		24,091		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?