On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United 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 NIC. Portions of the United Leasing's lease amortization schedule appear below: (FV of $1, PV of $1, EVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Jan. 1 Payments Effective Interest Decrease in Outstanding Balance Balance 2021 175,000 2021 12,000 12,000 163,000 2022 12,000 7,335 4,665 158,335 2023 12,000 7,125 4,875 153,460 2024 12,000 6,906 5,094 148,366 2025 12,000 6,676 5,324 143,042 2026 12,000 6,437 5,563 137,479 2038 12,000 2,566 9,434 47,581 2039 12,000 2,141 9,859 37,722 2040 12,000 1,697 10,303 27,419 2041 28,653 1,234 27,419 Required: 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.) 3. What is the effective annual Interest rate? (Round your percentage answer to 1 decimal place.) 4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.) 5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.) 6. What Is United's net Investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) 7. What Is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar.) 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest whole dollar.) Lease term years 2 Asset's residual value 3. Effective annual interest rate % 4. Lease payments for United 5 Lease payments for NIC 6. Net investment 8. Total effective interest revenue Right-of-use asset