Please explain how this answer is achieved. However, please explain using a scientific calculator only. - no appendix tables or excel can be used.

11.31 (a) fair value + nil initial direct costs = PV minimum lease payments + any unguaranteed residual Initial payment on 1 July 2019 payment $50 000 PV of remaining lease rental $50 000 paid at the beginning of each 128 855 year (meaning that the final payment is in three years and not four years as would be the case if the lease payments were made at the end of each lease year), number of year =3, interest rate=8% 40 000, number of years = 4 PV of guaranteed residual interest rate=8% 29 400 $208 255 Because the residual value is guaranteed it is included in the lease liability. We have not been provided with any information about what the lessor expects the asset to be worth at the end of the lease term, therefore we have included the whole amount within the lease payments. 31. Hopeful Ltd leased a portable sound recording studio from Lessor Ltd. Lessor has no material initial direct costs. Hopeful Ltd does not plan to acquire the portable studio at the end of the lease because it expects that, by then, it will need a larger studio. The terms of the lease are as follows: Date of entering lease: 1 July 2019. Duration of lease: four years. Life of leased asset: five years. Lease payments: $50 000 at the beginning of each year. First lease payment: 1 July 2019. Lease expires: 1 July 2023. Interest rate implicit in the lease: 8 per cent. Guaranteed residual: $40 000. REQUIRED Determine the fair value of the portable sound recording studio at 1 July 2019. LO 11.7 , (a) 11.10