Exercise $4-21($Algorithmic$)($LO$\mathrm{.}2)$

Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under $12-$ 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 Total Proceeds

$12$ months $$24,400$

$24$ months $$48,800$

Determine the income to be recognized in taxable income in $2023$ and $2024.$

Length of Contract $2023$ Income $2024$ Income

$12$ months $fill in the blank $1$

$12,200$

$fill in the blank $2$

$24$ months $fill in the blank $3$

$fill in the blank $4$