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 Leasings lease amortization schedule appear below:

Jan. 1	Payments		Effective Interest		Decrease in Balance		Outstanding Balance
2021							192,501
2021	20,000				20,000		172,501
2022	20,000		17,250		2,750		169,751
2023	20,000		16,975		3,025		166,726
2024	20,000		16,673		3,327		163,399
2025	20,000		16,340		3,660		159,739
2026	20,000		15,974		4,026		155,713
2038	20,000		7,364		12,636		61,006
2039	20,000		6,101		13,899		47,107
2040	20,000		4,711		15,289		31,818
2041	35,000		3,182		31,818		0

Required: 1. What is the lease term in years? 2. What is the assets residual value expected at the end of the lease term? 3. What is the effective annual interest rate? 4. What is the total amount of lease payments for United? 5. What is the total amount of lease payments for NIC? 6. What is Uniteds net investment at the beginning of the lease (after the first payment)? 7. What is Uniteds total effective interest revenue recorded over the term of the lease? 8. What amount would NIC record as a right-of-use asset at the beginning of the lease?