On April 1, 2022, GreenTech Inc. contracted Solar Energy Solutions to install solar panels for $800,000. GreenTech Inc. made payments for the installation as follows: May 1, $200,000, July 1, $400,000, October 1, $200,000. The installation was completed, and the solar panels were operational on October 31, 2022. GreenTech Inc. had the following outstanding debt as of December 31, 2022:

i) 10% three-year note to finance the installation, dated April 1, 2022, with interest payable annually on December 31. Principal amount: $500,000. ii) 6% six-year note payable, dated April 1, 2019, with interest payable annually on December 31. Principal amount: $300,000.

Required: i) Determine the amount of interest to be capitalized in 2022 in relation to the solar panel installation. (6 marks) ii) Prepare journal entries for GreenTech Inc. during 2022.