On January 1,2018, Majestic Mantles leased a lathe from Equipment Leasing under a finance lease. Lease payments are made ot 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 Jan. 1 Payments Effective Decrease in Outstanding Balance Interest 2018 24,000 2018 24,000 2019 24,000 2020 24,000 2021 24,000 24,000 2023 24,000 20,076 19,683 19,252 18,777 18,255 17, 680 224,758 24,000200,758 196,834 192,517 187,769 182,546 176,800 170,480 3,924 4,317 4,748 5,223 5,745 6,320 2022 2035 2036 2037 24,000 24,000 24,000 5,968 4,165 2,182 18,032 19,835 21,818 41, 652 21,818 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? (Round your percentage answers to 1 5. What is the total amount of lease payments? 6. What is the total effective interest expense recorded over the term of the lease