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 Jan. 1 2021 2021 2022 2023 2024 2025 2026 Payments 50,000 50,000 50,880 50,000 50,000 50,882 40,000 39,20 38,336 37,483 36,395 Decrease in Outstanding Balance Balance 550,000 50,000 588,888 10,000 499,000 10,880 479, 280 11,664 467,536 12,597 454,939 13,685 441,334 2038 2039 2840 2841 50.000 58,888 50,000 92,382 15,741 13,869 10,040 6,843 34,259 37,882 39,960 85,539 162,499 125,499 85,539 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 paymenty? (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.) 20 years 1. 2. 3. 4. 5. 6. 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 7. 8