Which of the following statements concerning leasing is not correct?

a. Should the airplane have a residual value higher than the amount used to determine the lease payments, the lessor would receive this gain as owner, not the lessee.

b. An improperly structured lease could be determined to be a purchase agreement under IRS guidelines.

c. A lease is considered debt under a company's balance sheet and, consequently, may restrict the firm's borrowing capacity.

d. Leasing makes it easier to upgrade equipment.