On October 1, 2020, Realty Ventures contracted Construction Solutions Ltd. to build a new apartment complex for $3,000,000. Realty Ventures made payments for the construction as follows: November 1, $800,000, January 1, $1,200,000, April 1, $1,000,000. The construction was completed, and the apartment complex was ready for occupancy on April 30, 2021. Realty Ventures had the following outstanding debt as of December 31, 2021:

i) 12% two-year note to finance the construction, dated October 1, 2020, with interest payable annually on December 31. Principal amount: $2,000,000. ii) 8% five-year note payable, dated October 1, 2017, with interest payable annually on December 31. Principal amount: $1,000,000.

Required: i) Determine the amount of interest to be capitalized in 2021 in relation to the construction of the apartment complex. (6 marks) ii) Prepare journal entries for Realty Ventures during 2021.