On December 31, 2014, Lane, Inc., sold equipment to Noll and simultaneously leased it back for 12 years. Pertinent information at this date is as follows:
Sales price ........... $480,000
Carrying amount .......... $360,000
Estimated remaining economic life .. 15 years

Required:
1. At December 31, 2014, should Lane report a gain from the sale of the equipment?
2. If not, how should it account for the sale and leaseback?