On April 1, 2182, Green Energy Solutions Inc. contracted Wind Power Dynamics to install wind turbines for $1,500,000. Green Energy Solutions Inc. made payments for the installation as follows: May 1, $400,000, August 1, $600,000, December 1, $500,000. The installation was completed, and the turbines were operational on December 31, 2182. Green Energy Solutions Inc. had the following outstanding debt as of December 31, 2182:

i) 10% three-year note to finance the installation, dated April 1, 2182, with interest payable annually on December 31. Principal amount: $800,000. ii) 6% five-year note payable, dated April 1, 2179, with interest payable annually on December 31. Principal amount: $700,000.

Required: i) Determine the amount of interest to be capitalized in 2182 in relation to the wind turbine installation. (6 marks) ii) Prepare journal entries for Green Energy Solutions Inc. during 2182.