Penny's Piano Studio, an accrual-method taxpayer, ran a special sale on July 1, 2020. Customers could prepay for as many months of piano lessons as they wanted at a discounted monthly rate of $50/month. Preston decided to prepay for 26 months of lessons (total cost of $50 * 26). The lessons began July 1, 2020 and will run for 26 consecutive months. For tax purposes, how much must Penny's include in gross income in 2020 if Penny's elects to defer prepaid income to the maximum extent possible