Tax Drill - Revenue Procedure 2004-34 Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2023, Bigham sold the following customer contracts: Length of contract 12 months 24 months 12 months Total Proceeds Determine the income to be recognized in 2023 and 2024. Length of Contract 24 months $14,000 $24,000 2023 Income $ $ 2024 Income $

Tax Drill - Revenue Procedure 2004-34 Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12 -month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2023, Bigham sold the following customer contracts: Determine the income to be recognized in 2023 and 2024