On November $1,1999$ Senn Company contracted Super Contractors to have a building constructed for Sh $1,750,000.$ Senn made payments for the construction as follows:

January $1,$ sh $310,000,$ March $1,$ Sh $420,000,$ May $1,$ Sh $540,000,$ December $31,$ Sh $480,000.$

The construction was completed and the building was ready for occupation on December $31,200.$ Senn had the following outstanding debt as $31$ december $2000.$

i$)15\%$ three year note to finance construction of the building, dated December $31,1999$ with interest payable annually on December $31.$ Sh $800,00$

ii$)10\%$ six year note payable, dated December $31,1996$ with interest payable annually on December $31$

Sh $600,000$

iii$)12\%$ ten year bonds issued December $31,1995,$ with interest payable annually on December $31$

Sh $400,000$

Required:

i$)$ Determine the amount of interest to be capitalized in $2000$ in relation to the construction of the building. $(6$ marks$)$

ii$)$ Prepare journal entries for Senn Company during $2000.$