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 302,898 2021 29,500 29,500 273,398 2022 29,500 23,239 6,261 267,137 2023 29,500 22,707 6,793 260,344 2024 29,500 22,129 7,371 252,973 2025 29,500 21,503 7,997 244,976 2026 29,500 20,823 8,677 236,298 2027 29,500 20,085 9,415 226,884 2038 29,500 6,404 23,096 52,249 2039 29,500 4,441 25,059 27,190 2040 29,500 2,311 27,189 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?