Saved ?? apter 15 Pre-Built Problems 18 On January 1, 2018, National Insulation Corporation (NIC) leased equipment from United Lea payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value NIC. Portions of the United Leasing's lease amortization schedule appear below: (FV of $1, PV of $1 and PVAD of $) (Use appropriate factorls) from the tables provided.) sing under a finance lease. Lease FVA of S1, PVA of S1. EVAD of $1 ints Effective Decrease in Outstanding Jan. 1 Paymenta T Interest Balance Balance 2018 2018 2019 24,000 2020 24,000 2021 2022 2023 243,635 219,635 215,402 210,788 205,759 200,277 194,302 eBook 24,000 19,767 19.386 18,971 18,518 18,025 24,000 4,233 4,614 5,029 5,482 5,975 Print 24,000 24,000 24,000 24.000 24,000 2035 7,194 5,682 4,033 2,236 16,806 18,318 19,967 24.844 63,129 44,811 24,844 2036 2038 24,000 86 27,080 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? (Round your answers to nearest whole dollar.) 3. What is the effective annual interest rate? (Round your percentage answer to 1 decimal place.) 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 NIC? (Round your answers to nearest whole dollar.) 6. What is United's net investment at the beginning of the lease (after 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 lease? (Round your answers to nearest whole dolilar:) 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest whole dollar.)