Problem 15-7 Lease amortization schedule (LO15-2, 15-6] On January 1, 2016. National Insulation Corporation (NIC) leased equipment from United Leasing under a finance ease Lease payments are made annually Title does not transfer to the lessee and there is no purchase option or quarantee of a residual value by NIC Portions of the United Leasing lease amortization schedule appear below. V of $1. PV 1 FVA S VA V AD OSE and PVAD of S1) (Use appropriate factor(s) from the tables provided) Jan. 1 Payments Effective Decrease in Interest Outstanding 45.00 12. 12,898 12, 12,888 12.ee 12.00 3.526 117.531 3,503 12.839 12.09 2.96 2.272 Required: 1. What is the lease termin years? 2. What is the esset's residual value expected at the end of the lease term? (Round your answers to nearest whole 3. What is the effective annual interest rate (Round your percentage answer to 1 decimal placer 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 NICY (Round your answers to nearest whole dollar 6. What is United's net investment at the beginning of the lease alter the first payment Round your answers to nearest whole dollar) 7. What is United's total effective interest revenue recorded over the term of the leaso? (Pound your answers to nearest whole dollar 8. What amount would NIC record so right of use asset at the beginning of the lease? (Round your answers to nearest whole dollar) 1 2 3. 4 5 5. Lesse tem Asset's residual value Efective annual interest rate Lease payments for United Lease payments for NIC Net investment Total effective meest revenue