The following statements are related to finance leases:

i. A lease of land which does not transfer legal title to the lessee by the end of the lease term cannot be a finance lease.

ii.In the case of a finance lease, the statement of financial position of the lessor shows the leased item as an asset so long as legal title to the item is not transferred to the lessee.

Which of the following would be a true remark for the above statements?

a. only i is true

b. both i and ii are false

c. only ii is false

d. both i and ii are true