On March 1, 2019, AquaTech Inc. contracted Ocean Engineering Ltd. to build a desalination plant for $1,200,000. AquaTech Inc. made payments for the construction as follows: April 1, $300,000, June 1, $400,000, September 1, $500,000. The construction was completed, and the desalination plant was operational on September 30, 2019. AquaTech Inc. had the following outstanding debt as of December 31, 2019:

i) 15% two-year note to finance the construction, dated March 1, 2019, with interest payable annually on December 31. Principal amount: $800,000. ii) 8% six-year note payable, dated March 1, 2016, with interest payable annually on December 31. Principal amount: $400,000.

Required: i) Determine the amount of interest to be capitalized in 2019 in relation to the desalination plant construction. (6 marks) ii) Prepare journal entries for AquaTech Inc. during 2019.