21. Mycroft signed a contract with Holmes on March 31, 2015, for Holmes to build a yacht for Mycroft, with delivery on November 30, 2015. Three months after delivery the agreed $4.5 million would be paid by Mycroft. Because of uncertainty on whether rare requested construction materials would be available, either party is able to leave the contract without penalty unless Holmes locates the materials and begins construction work, and as of December 31, 2015, Holmes had not located the materials. According to US GAAP, does a contract exist for revenue recognition purposes, and why? a) Yes, because a legally binding contract was signed b) No, because there are not yet any enforceable rights or obligations c) Yes, because Holmes has already begun the search for materials d) No, because Mycroft is obligated to pay Holmes until the following year.