Consider the following statements about leases.

Statement I: For lessees that had significant operating leases prior to adopting AASB $16,$ the adoption of the new standard is likely to have an adverse impact on profits in the early years.

Statement II: If the lessee retains a substantial portion of the risks and rewards incidental to ownership of the asset, the lessee must classify the lease as a finance lease in accordance with AASB $16.$

Statement III: At the commencement date, it is possible for the lease liability to exceed the value of the right$-$of$-$use asset, assuming no lease incentives receivable.

Statement IV: If the lessee is expected to return the asset at the end of the lease term and the asset's useful life is longer than the lease term, the asset should be depreciated over the useful life.

Choose the most correct answer:

a$.$

All four statements are incorrect

b$.$

All four statements are correct

c$.$

One statement is correct

d$.$

Two statements are correct

e$.$

Three statements are correct