Problem 15-6 (Algo) Lease amortization schedule [LO15-2, 15-6] On January 1, 2024, 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. 2024 2025 Effective Interest January 1 2024 Payments $ 15,000 $ 15,000 2026 $ 15,000 2027 $ 15,000 2028 $ 15,000 $ 12,785 2029 $15,000 $ 12,542 $ 13,381 $ 13,203 $13,005 Decrease in Balance $ 15,000 $ 1,619 $1,797 $1,995 $ 2,215 $ 2,458 Outstanding Balance $136,642 $121,642 $ 120,023 $ 118,226 $ 116,231 $114,016 $111,558 $ 8,600 2041 $ 15,000 $ 6,400 2042 $ 15,000 $ 5,454 $ 9,546 2043 $ 15,000 $ 4,404 2044 $ 32,677 $ 3,238 $ 10,596 $29,439 $ 49,581 $40,035 $29,439 $0 Note: Use tables, Excel, or a financial calculator. (EV of $1. EV of $1. EVA of$1. PVA of $1. EVAD of $1 and PVAD of $1) 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? 3. What is the effective annual interest rate? Note: Enter your answer as a percent rounded to 1 decimal place. 4. What is the total amount of lease payments for United? 5. What is the total amount of lease payments for NIC? 6. What is United's net investment at the beginning of the lease (after the first payment)? 7. What is United's total effective interest revenue recorded over the term of the lease? s 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? Note: Round your answers to nearest whole dollar. 1 Lease term 2. Asset's residual value years 3. Effective annual interest rate 4 Total lease payments for United 5. Total lease payments for NIC % 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? 3. What is the effective annual interest rate? Note: Enter your answer as a percent rounded to 1 decimal place. 4. What is the total amount of lease payments for United? 5. What is the total amount of lease payments for NIC? 6. What is United's net investment at the beginning of the lease (after the first payment)? 7. What is United's total effective interest revenue recorded over the term of the lease? 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? Note: Round your answers to nearest whole dollar. 1. Lease term 2. Asset's residual value 3. Effective annual interest rate 4. Total lease payments for United 5. Total lease payments for NIC 6. Net investment 7. Total effective interest revenue 8. Right-of-use asset years %