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 2821 2022 2823 2824 2025 2926 2827 22,500 22,500 22,500 22,500 22, See 22,500 22,500 Effective Decrease in Outstanding Interest Balance Balance 246,579 22,500 224,79 16,806 5,694 218,385 16,379 6,121 212,264 15,920 6,580 205,684 15,426 7,074 198, 610 14,896 7,604 191,606 14,325 8,175 182,831 2838 2839 2848 22, See 22,500 22,500 4,388 3,038 1,570 18,112 19,47 20,930 40, 399 20,929 B 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.) 3. What is the total amount of lease payments? 8. What is the total effective interest expense recorded over the term of the lease? 1. 2. Lease liability Right-of-use asset Lease term 3. years 96 4. Effective annual interest rate 5. Total of lease payments Total effective interest expense 6