Accounting Standards Codification Topic $842($also known as ASC $842)$ requires that for an unqualified audit report, except for operating leases with payment terms of $12$ months or less, all other leases must be included on the balance sheet by reporting the

a$.$ present value of future lease payments as a $$right$-$to$-$use$$ asset and showing this same amount as an offsetting liability.

b$.$ undiscounted sum of future lease payments, less the residual value, as an asset and as an offsetting liability.

c$.$ residual value as a liability.

d$.$ residual value as a fixed asset.

e$.$ undiscounted sum of future lease payments as an asset and as an offsetting liability.