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On January 1, 2023, GreenBuild Co. contracted EcoConstructors to build a new energy-efficient office complex for $2,000,000. GreenBuild made payments for the construction as follows:

  1. On January 1, 2023, GreenBuild Co. contracted EcoConstructors to build a new energy-efficient office complex for $2,000,000. GreenBuild made payments for the construction as follows: March 1, $500,000, June 1, $600,000, and December 31, $900,000. The construction was completed, and the office complex was ready for use on December 31, 2023. GreenBuild had the following outstanding debt as of December 31, 2023:
    i) A 12% four-year note to finance construction of the office complex, dated December 31, 2022, with interest payable annually on December 31. Principal amount: $1,200,000.
    ii) A 7% six-year note payable, dated December 31, 2020, with interest payable annually on December 31. Principal amount: $600,000.
    iii) 10% ten-year bonds issued on December 31, 2019, with interest payable annually on December 31. Principal amount: $400,000.

    Required:
    i) Determine the amount of interest to be capitalized in 2023 in relation to the construction of the office complex.
    ii) Prepare journal entries for GreenBuild Co. during 2023.

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