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, 2019, Bigham sold the following customer contracts:

Length of Contract ? ? ? ? ? Total Proceeds12 months..........................................$14,00024 months..........................................$24,000

Determine the income to be recognized in taxable income in 2019 and 2020.

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Length of Contract 12 months |24 months 2020 Income 2019 Income a. C. d. b.