AP $8-6($Capital Gains Reserves$)$

Mr$.$ Nguyen purchased a large tract of land near Edmonton $15$ years ago for $$750,000.$ It was sold in April $2023$ to a developer for $$2,500,000.$ Mr$.$ Nguyen received a down payment of $$625,000(25\%)$ and accepted a $25-$year, $8\%$ mortgage for the balance of $$1,875,000.$ The payments on the mortgage will begin in $2024$ and will require the repayment of $$75,000(3\%$ of the proceeds of disposition$)$ per year in principal.

Mr$.$ Nguyen wishes to defer income tax through the use of capital gains reserves to the maximum extent possible.

Required: Calculate the capital gains consequences of this sale for $2023$ up to and including $2027,$ assuming that Mr$.$ Nguyen claims the maximum capital gains reserve in $2023$ and in all subsequent taxation years