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 $1,2022,$ Bigham sold the following customer contracts:

Length of contract Total Proceeds

$12$ months $$38,800$

$24$ months $$77,600$

Determine the income to be recognized in taxable income in $2022$ and $2023.$

Length of Contract $2022$ Income $2023$ Income

$12$ months $fill in the blank $1$

$19,400$ right

$fill in the blank $2$

$19,400$ right

$24$ months $fill in the blank $3$

$19,400$ right

$fill in the blank $4$

$38,800$ wrong