On December 1, 2021, TechSavvy Ltd. contracted Construction Solutions Inc. to build a new office complex for $2,500,000. TechSavvy Ltd. made payments for the construction as follows: January 1, $600,000, March 1, $900,000, June 1, $1,000,000. The construction was completed, and the office complex was ready for occupancy on June 30, 2023. TechSavvy Ltd. had the following outstanding debt as of December 31, 2023:

i) 12% three-year note to finance the construction, dated December 1, 2021, with interest payable annually on December 31. Principal amount: $1,500,000. ii) 7% five-year note payable, dated December 1, 2018, with interest payable annually on December 31. Principal amount: $1,000,000.

Required: i) Determine the amount of interest to be capitalized in 2023 in relation to the construction of the office complex. (6 marks) ii) Prepare journal entries for TechSavvy Ltd. during 2023.