Question: Which of the following is correct about intercompany leases (i.e., leases btwn the parent and the subsidiary)? a. The effect of the lease on the parent's and subsidiary's income is reversed (i.e., cancelled) by adjusting their respective income distribution schedules. b. None of these statements is correct. c. Only intercompany capital leases are reported in the consolidated F/S, while intercompany operating leases are eliminated in the consolidation process. d. The most common form of intercompany leases involves a subsidiary (lessor) buying an asset and leasing it to the parent (lessee).