Mr. Fox sells land with the following details.

Proceeds of Disposition	$895,000
ACB of Land	135,000
Selling costs	35,800

The terms of sale require a down payment in the current year of $447,500 and the balance to be paid on January 1 of subsequent years, a principal payment equal to $44,750.00. Mr. Fox wishes to use reserves to defer the payment of taxes on capital gains for as long as possible.

REQUIRED:

For the current and next 2 years (in total 3 years) compute the capital gains taxation.