Problem $15-3($Algo$)$ Lease amortization schedule $[$LO$15-2]$

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:

January $1$PaymentsEffective InterestDecrease in BalanceOutstanding Balance$$$ $302,8982024$$ $29,500$$ $29,500$$ $273,3982025$$ $29,500$$ $23,239$$ $6,261$$ $267,1372026$$ $29,500$$ $22,707$$ $6,793$$ $260,3442027$$ $29,500$$ $22,129$$ $7,371$$ $252,9732028$$ $29,500$$ $21,503$$ $7,997$$ $244,9762029$$ $29,500$$ $20,823$$ $8,677$$ $236,2982030$$ $29,500$$ $20,085$$ $9,415$$ $226,8842041$$ $29,500$$ $6,404$$ $23,096$$ $52,2492042$$ $29,500$$ $4,441$$ $25,059$$ $27,1902043$$ $29,500$$ $2,311$$ $27,189$$ $0$

Required:

What is Majestic$$s lease liability at the beginning of the lease $($after the first payment$)?$

What amount would Majestic record as a right$-$of$-$use asset?

What is the lease term in years?

What is the effective annual interest rate?

Note: Round your percentage answer to $1$ decimal place.

What is the total amount of lease payments?

What is the total effective interest expense recorded over the term of the lease?