1 point) Kathy, an accrual basis taxpayer, operates a gym. She sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $600 ($300/12 = $50 per month); a two-year membership costs $1,152 ($1,152/24 = $48 per month). Cash payment is required at the beginning of the membership. On August 1, 2018, Kathy sold a one-year membership and a two-year membership. Determine the amount of income Kathy recognizes in 2020.

a. $0

b. $490

c. $336

d. $1,262