McFarland Corporation leased equipment under a lease calling for the payment of $50,000 a year in rent. At the end of the current year, when the capital lease had a remaining term of 20 years, McFarland Company subleased the asset for a rental of $75,000 a year for 20 years. The new lease is acceptable to the lessor, who agrees that McFarland Company has completed its primary obligation. When will McFarland Company report the gain from this transaction? Explain.