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, 2019, Bigham sold the following customer contracts:

Length of contract Total Proceeds

12 months $24,400

24 months $48,800

Determine the income to be recognized in taxable income in 2019 and 2020.

Length of Contract 2019 Income 2020 Income

12 months

24 months