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: (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.)

Jan. 1	Payments		Effective Interest		Decrease in Balance		Outstanding Balance
2021							145,000
2021	12,000				12,000		133,000
2022	12,000		9,310		2,690		130,310
2023	12,000		9,122		2,878		127,432
2024	12,000		8,920		3,080		124,352
2025	12,000		8,705		3,295		121,057
2026	12,000		8,474		3,526		117,531
2038	12,000		4,059		7,941		50,041
2039	12,000		3,503		8,497		41,544
2040	12,000		2,908		9,092		32,452
2041	34,724		2,272		32,452		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? (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 Uniteds net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) 7. What is Uniteds 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	20	years
2.	Assets residual value
3.	Effective annual interest rate		%
4.	Lease payments for United
5.	Lease payments for NIC	$240,000
6.	Net investment
7.	Total effective interest revenue
8.	Right-of-use asset