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. (EV of $1, PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Effective Decrease in Outstanding Jan. 1 Payments Interest Balance Balance 2021 162,001 2021 14,500 14,500 147,501 2022 14,500 11,800 2,700 144,801 2023 14,500 11,584 2,916 141,885 2024 14,500 11,351 3,149 138,736 2025 14,500 11,099 3,401 135,335 2026 14,500 10,827 3,673 131,662 2038 14,500 5,250 9,250 56,380 2039 14,500 4,510 9,990 46,390 2040 14,500 3,711 10,789 35,601 2041 38,449 2,848 35,601 0 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.) 2. 1. Lease term Asset's residual value years 3. Effective annual interest rate % 4. Lease payments for United 5. Lease payments for NIC 6. Net investment 7 Total effective interest revenue 8. Right-of-use asset