On September 1, 2019, Manufacturing Inc. contracted Construction Experts Ltd. to build a new manufacturing plant for $2,000,000. Manufacturing Inc. made payments for the construction as follows: October 1, $500,000, January 1, $700,000, April 1, $800,000. The construction was completed, and the plant was ready for operation on April 30, 2020. Manufacturing Inc. had the following outstanding debt as of December 31, 2020:

i) 10% two-year note to finance the construction, dated September 1, 2019, with interest payable annually on December 31. Principal amount: $1,000,000. ii) 6% five-year note payable, dated September 1, 2016, with interest payable annually on December 31. Principal amount: $1,000,000.

Required: i) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the manufacturing plant. (6 marks) ii) Prepare journal entries for Manufacturing Inc. during 2020.