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, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Effective Decrease in Outstanding Jan. 1 2021 Payments Interest Balance Balance 550,000 2021 50,000 50,000 500,000 2022 50,000 40,000 10,000 490,000 2023 50,000 39,200 10,800 479,200 2024 50,000 38,336 11,664 467,536 2025 50,000 37,403 12,597 454,939 2026 50,000 36,395 13,605 441,334 2038 50,000 15,741 34,259 162,499 2039 50,000 13,000 37,000 125,499 2040 50,000 10,040 39,960 2041 92,382 6,843 85,539 85,539 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.) 1. 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 7. Total effective interest revenue 8. Right-of-use asset