Pont Chemical Remediation Ltd. issued options in 20X6 allowing the holder to acquire 250,000 common shares in 5 years time at an acquisition price of $20 per share. Using an option pricing model, the options are valued at $600,000. The options were issued for consulting and promotion work done, tasks that are not easily valued. Required: 1. Provide the journal entry to record the transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Assume that the options were exercised when the market price of common shares is $44. Provide the entry for exercise. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Assume that the options were allowed to lapse when the price of common shares is $18. Provide the entry for the lapse. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)