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: Effective Decrease Outstanding January Interest 1 Payments in Balance Balance $ 291,599 $ $ 2024 $ 264,099 27,500 27,500 $ $ $ 2025 $ 257,727 27,500 21,128 6,372 $ $ $ 2026 27,500 20,618 6,882 $ 250,845 $ $ $ 2027 $243,413 27,500 20,068 7,432 $ $ $ 2028 $ 235,386 27,500 19,473 8,027 $ $ $ 2029 27,500 18,831 8,669 $ 226,717 $ $ $ 2030 $217,354 27,500 18,137 9,363 $ 2041 $ 5,670 $ 49,040 27,500 21,830 $ $ 2042 $ 3,923 $ 25,463 27,500 23,577 $ $ 2043 $ 2,037 $ 0 27,500 25,463 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 %