Bugzap, a calendar year accrual basis taxpayer, is engaged in the pest control business, providing regular extermination treatments four times a year. It sells both one year and two year service contracts. On September 1 2020, it sold six one-year contracts for $1,400 each and provided one of the four treatments for each of those customers during 2020, On the same date, it also sold three two-year contracts for $2,000 each and provided on of the eight treatments for each of those customers during 2020. If Bugzap wants to defer service income from these contracts for as long as possible, how much income from these contracts must it report in 2020 and how much income can it defer to 2021 and/or any later years?