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
							206,028
2021	22,000				22,000		184,028
2022	22,000		18,403		3,597		180,431
2023	22,000		18,043		3,957		176,474
2024	22,000		17,647		4,353		172,121
2025	22,000		17,212		4,788		167,333
2026	22,000		16,733		5,267		162,067
2027	22,000		16,207		5,793		156,273
2038	22,000		5,471		16,529		38,181
2039	22,000		3,818		18,182		19,999
2040	22,000		2,000		20,000		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?