Which of the following statements is correct?

a. The reporting changes required under ASC 842 will impact how leases are treated for U.S. federal income tax purposes.

b. Under ASC 842 there are four criteria that must be met to classify a lease as an operating lease. If just one of these criteria is not met, then the lease is classified as a finance lease. If the lease is classified as a finance lease, it remains off the balance sheet and only the lease expense would be shown as an operating expense on the income statement.

c. As a result of the new guidance under ASC 842, lessees with operating leases will report higher earnings before interest, taxes, depreciation and amortization (EBITDAs) than lessees with finance leases.

d. The intent of the new leasing guidance (Accounting Standards Codification Topic 842 or ASC 842) is to consider the form of the lease transaction rather than its substance.

e. Under ASC 842, a lessee with an operating lease with payment terms greater than 12 months must capitalize the lease and report it on the firms balance sheet. As a result, the lessee firm will report a right-to-use asset and a liability on its balance sheet equal to the present value of the lease payments. In addition, the lessee firm will report annual lease payments as a lease expense (an operating expense) on the income statement.