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 contract 12 months 24 months Total Proceeds $48,400 $96,800 Determine the income to be recognized in taxable income in 2020 and 2021. Length of Contract 2020 Income 2021 Income 12 months 24, 2007 24,200 24 months 24,200 48,400 x Feedback Check My Work Generally, accrual basis taxpayer can elect to defer recognition of income from advance payments for goods or services