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: Effective Interest Decrease in Balance Jan. 1 Payments 2021 2022 2023 28,500 28,500 28,500 28,500 28,500 28,500 28,500 2024 2025 2026 2027 Outstanding Balance 283,578 255,078 249,535 243,493 236,907 229,729 221,905 213,376 22,957 22,458 21,914 21,322 20,676 19,971 28,500 5,543 6,042 6,586 7,178 7,824 8,529 2038 2039 2040 28,500 28,500 28,500 6,493 4,512 2,353 22,007 23,988 26, 147 50,133 26,146 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