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 20.000 20,000 20,000 20.000 20,000 20,000 20,000 Effective Decrease in Outstanding Interest Balance Balance 187,298 20,000 167,298 16,730 3,270 164.028 16,403 3,597 160,431 16,043 3.957 156, 474 15,647 4.353 152, 121 15.212 4.788 147.333 14,733 5,267 142.066 4.974 3.471 34,711 18,182 20,000 20,000 20,000 2038 2039 2040 15.026 16,529 18,182 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? 5. What is the total amount of lease payments? 6. What is the total effective interest expense recorded over the term of the lease? years Lease liability Right-of-use asset Lease term Effective annual interest rate Total of lease payments Total effective interest expense