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 225,001 2021 26,000 26,000 199,001 2022 26,000 23,880 2,120 196,881 2823 26,000 23,626 2,374 194,507 2824 26,000 23,341 2,659 191,848 2025 26,000 23,022 2,978 188,870 2826 26,000 22,664 3,336 185,534 2038 26,000 13,004 12,996 95,374 2039 26,000 11,445 14,555 88,819 2840 26,000 9,698 16,302 64,517 2841 72,259 7,742 64,517 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.) rint rences 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 answe dollar.) 7. What Is United's total effective Interest revenue recorded over the term of the lease? (Round your answers 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers 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 73 Total effective interest revenue 8. Right-of-use asset