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
							228,853
2021	23,000				23,000		205,853
2022	23,000		18,527		4,473		201,380
2023	23,000		18,124		4,876		196,504
2024	23,000		17,685		5,315		191,189
2025	23,000		17,207		5,793		185,396
2026	23,000		16,686		6,314		179,082
2027	23,000		16,117		6,883		172,199
2038	23,000		5,240		17,760		40,461
2039	23,000		3,641		19,359		21,103
2040	23,000		1,899		21,101		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?