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 2021 2022 2023 2024 2025 2026 2027 27,000 27,000 27,000 27,000 27,000 27,000 27,000 Effective Decrease in Outstanding Interest Balance Balance 268,653 27,000 241,653 21,749 5, 251 236, 402 21,276 5,724 230, 678 20, 761 224,439 20,230 6,800 217,639 19,587 7,413 210,226 18,920 8,080 202,146 6,239 2038 2039 2040 27,000 27,000 27,000 6,151 4,275 2,229 20,849 22,725 24,771 47,496 24,770 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? Answer is complete but not entirely correct. 1 Lease liability $ 209,123 X