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 Interest Decrease in Balance Payments Paymen Jan. 1 2021 2021 2022 2023 2024 2025 2026 16,000 16,000 16,000 16,000 16,000 16,000 12,040 11,763 11,466 11,149 10,809 16,000 3,960 4,237 4,534 4,851 5,191 Outstanding Balance 188,000 172,000 168.040 163,803 159,269 154,418 149,227 2038 2039 2040 2041 16,000 16,000 16,000 25,656 4,309 3,491 2,615 1,678 11,691 12,509 13,385 23,978 49,872 37,363 23,978 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.) 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 w dollar.) 7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest wh 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest wh dollar.) years % 1. 2. 3. 4. 5. 6. 7. 8. Lease term Asset's residual value Effective annual interest rate Lease payments for United Lease payments for NIC Net investment Total effective interest revenue Right-of-use asset