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
							308,032
2021	30,000				30,000		278,032
2022	30,000		23,633		6,367		271,665
2023	30,000		23,092		6,908		264,757
2024	30,000		22,504		7,496		257,261
2025	30,000		21,867		8,133		249,128
2026	30,000		21,176		8,824		240,303
2027	30,000		20,426		9,574		230,729
2038	30,000		6,513		23,487		53,135
2039	30,000		4,516		25,484		27,651
2040	30,000		2,350		27,650		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?

\begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline 1. & Lease liability & & \\ \hline 2. & Right-of-use asset & & \\ \hline 3. & Lease term & & years \\ \hline 4. & Effective annual interest rate & % \\ \hline 5. & Total of lease payments & & \\ \hline 6. & Total effective interest expense & & \\ \hline \end{tabular}