Final answer:
In a sale-leaseback transaction classified as a capital lease, the seller-lessee records the asset and also records interest expense during the lease period.
Step-by-step explanation:
If the lease in a sale-leaseback transaction meets one of the four leasing criteria and is therefore accounted for as a capital lease, the seller-lessee would record the asset on its books and the seller-lessee would also record interest expense during the lease period. This treatment is due to the fact that under a capital lease, the lessee assumes both the benefits and risks of ownership, even though they do not hold the title to the asset. As per accounting standards, such as IFRS 16 and ASC 842, when a lease is classified as a capital lease (or finance lease under IFRS), the lessee recognizes the leased asset on their balance sheet and depreciates it, while also recognizing a lease liability reflecting future lease payments. Hence, the correct answer is 'd. Seller-lessee Seller-lessee'.