On September 1, 2018, Greenfield Farms contracted Landscaping Experts to redesign their farm layout for $300,000. Greenfield Farms made payments for the redesign as follows: October 1, $50,000, December 1, $100,000, March 1, $150,000. The redesign was completed and the farm was ready for use on March 31, 2019. Greenfield Farms had the following outstanding debt as of December 31, 2019:

i) 10% three-year note to finance the redesign, dated September 1, 2018, with interest payable annually on December 31. Principal amount: $200,000. ii) 6% seven-year note payable, dated September 1, 2017, with interest payable annually on December 31. Principal amount: $100,000.

Required: i) Determine the amount of interest to be capitalized in 2019 in relation to the farm redesign. (6 marks) ii) Prepare journal entries for Greenfield Farms during 2019.