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, 2018, Bigham sold the following customer contracts:

Determine the income to be recognized in taxable income in 2018 and 2019.

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Length of Contract Total Proceeds 12 months 24 months $14,000 $24,000 Length of Contract 2018 Income 2019 Income 12 months 24 months A. b. C- d..