On January 1, 2014, Bensen Company leased equipment

to Flynn Corporation. The following information pertains to this lease.

1. The term of the noncancelable lease is 6 years, with no renewal option. The equipment reverts to the

lessor at the termination of the lease.

2. Equal rental payments are due on January 1 of each year, beginning in 2014.

3. The fair value of the equipment on January 1, 2014, is $150,000, and its cost is $120,000.

4. The equipment has an economic life of 8 years, with an unguaranteed residual value of $10,000.

Flynn depreciates all of its equipment on a straight-line basis.

5. Bensen set the annual rental to ensure an 11% rate of return. Flynns incremental borrowing rate is

12%, and the implicit rate of the lessor is unknown.

6. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround

the amount of costs yet to be incurred by the lessor.

(a)Calculate the amount of the annual rental payment and calculate the amount of the leased equipment in the books of Flynn.

How exactly do I calculate these using a financial calculator? not by using the PV table

This is the book solution but I need to know the how to with a financial calculator

Computation of annual rental payment: ($150,000 -(10000 x .53464*) / 4.6959** -= $30,804

**Present value of $1 at 11% for 6 periods.

**Present value of an annuity due at 11% for 6 periods.

Leased Equipment 141,846***

($30,804 X 4.60478)***

***Present value of an annuity due at 12% for 6 periods.