Charter Airways Ltd. is the charter division of a large national airline. On July 1, 2017 Charter entered an agreement with a major league professional sports team to fly the team and its staff to its 40 away games for a payment of $2,800,000 made in two equal instalments on September 1, 2017 and January 15, 2018. The team's season runs from September through April. The contract is non-cancellable and Charter Airways will keep the $2,800,000 if for any reason the team chooses not to use the flights. In addition, as part of the contract, Charter Airways agreed to display the team's logo on their planes until the end of the contract.

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When should Charter Airways recognize the revenue from the agreement with the sports team? Charter Airways' year-end is December 31.