On January 1, 2024, Majestic Mantles leased a lathe from Equipment 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 Majestic. Portions of the Equipment Leasing's lease amortization schedule appear below: Decrease in Balance January 1 Payments Effective Interest 2024 2025 $ 25,500 $ 25,500 $ 25,500 $ 19,591 $ 5,909 2026 $ 25,500 $19,119 2027 $ 25,500 $ 18,608 $ 6,892 2028 $ 25,500 $ 18,057 2029 $ 25,500 $17,461 $ 8,039 2030 $ 25,500 $ 16,818 $ 8,682 $ 6,381 $ 7,443 Outstanding Balance $ 270,392 $ 244,892 $ 238,983 $ 232,602 $225,710 $ 218,267 $210,228 $201,547 2041 $ 25,500 $ 5,257 $ 20,243 2042 $ 25,500 $ 3,638 $ 21,862 2843 $ 25,500 $ 1,889 $ 23,611 $ 45,474 $ 23,612 $0 Required: 1. What is Majestic's lease liability at the beginning of the lease (after the first payment)? 2. What amount would Majestic record as a right-of-use asset? What in the loare form in unare? 2041 2042 $ 25,500 $ 5,257 $ 20,243 $ 25,500 $ 3,638 $ 21,862 $ 45,474 $ 23,612 2043 $ 25,500 $ 1,889 $ 23,611 $ 0 Required: 1. What is Majestic's lease liability at the beginning of the lease (after the first payment)? 2. What amount would Majestic record as a right-of-use asset? 3. What is the lease term in years? 4. What is the effective annual interest rate? Note: Round your percentage answer to 1 decimal place. 5. What is the total amount of lease payments? 6. What is the total effective interest expense recorded over the term of the lease? 1. Lease liability 2. Right-of-use asset 3. Lease term 4. Effective annual interest rate 5. Total of lease payments 6. Total effective interest expense years %