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Question - 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, 2020, Bigham sold the following customer contracts:
Length of contract Total Proceeds
12 months - $20,800
24 months - $41,600
Required - Determine the income to be recognized in taxable income in 2020 and 2021.
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