Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12- and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2020, Bigham sold the following customer contracts:

Length of contractTotal Proceeds

12 months-$20,800

24 months-$41,600

Determine the income to be recognized in taxable income in 2020 and 2021.

Length of Contract

2020 Income 2021 Income

12 months $-------------- $--------------

24 months. $....................... $--------------