KRP Machinery Corporation sold manufacturing equipment for $2,550 each. Each machine carried with it a 2-year warranty against manufacturing defects. Of the total sales price per unit, $400 is attributable to the 2-year warranty. From experience, KRP Machinery Corporation determined that each machine sold would average $340 in replacement parts over the initial two-year warranty period. KRP Machinery Corporation also sells an extended warranty for its machines. For $670, customers can purchase an extended warranty that extends the warranty on the machine for an additional 2 years. From experience, KRP Machinery Corporation determined that each machine sold would average $450 in replacement parts over the period of the extended warranty. In 20x4, the company sold 1,030 machines. In 20x4, the company incurred $172,500 in total repair costs (replacement parts out of inventory). 820 of the customers that bought machines also purchased the extended warranty." Which of the following revenue recognition methods will produce the most aggressive debt-to-equity ratio for KRP at the end of 20x4? Revenue recognized evenly over the warranty period Revenue recognized when warranty work is completed Revenue recognized when cash is received