Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2016, Bigham sold the following customer contracts: Length of Contract 12 months and 24 months Total Proceeds $14,000(12 months) $24,000(24 months) ( Determine the income to be recognized in taxable income in 2016 and 2017.