On January 1, 2027, Green Tech Inc. contracted Wind Power Solutions to install wind turbines for $1,500,000. Green Tech Inc. made payments for the installation as follows: February 1, $400,000, May 1, $600,000, September 1, $500,000. The installation was completed, and the turbines were operational on September 30, 2027. Green Tech Inc. had the following outstanding debt as of December 31, 2027:

i) 10% three-year note to finance the installation, dated January 1, 2027, with interest payable annually on December 31. Principal amount: $800,000. ii) 6% five-year note payable, dated January 1, 2024, with interest payable annually on December 31. Principal amount: $700,000.

Required: i) Determine the amount of interest to be capitalized in 2027 in relation to the wind turbine installation. (6 marks) ii) Prepare journal entries for Green Tech Inc. during 2027.