QUESTION 76 Recognizing revenue — customer does not control work in process Carpenter enters into a contract to manufacture several desks for Office Co. The contract has the following characteristics: • Office Co can cancel the contract at any time (with a termination penalty), and any work in process remains the property of Carpenter. • The work in process can be completed and sold to another customer if the contract is cancelled. • Physical possession and title do not pass until completion of the contract. • A deposit is collected at the outset of the transaction, but the majority of the payments are due after the products have been delivered. When should Carpenter recognize revenue from this contract?