Passport Global sold 250 shares of $4.00 par value capital stock in exchange for equipment worth $3,000.The effect of this transaction on Passport Global would be to

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The transaction involves the issuance of shares of capital stock in exchange for equipment. Therefore, the company's Equipment account would increase by $3,000, and the Capital Stock account would increase by the par value of the shares issued, which is $1,000 ($4.00 x 250 shares). The difference between the equipment's fair value and the par value of the shares issued, which is $2,000 ($3,000 - $1,000), represents the amount of additional consideration that the company received. This additional consideration would be recorded in the Paid-in Capital in Excess of Par account. Therefore, the transaction would increase the Equipment account by $3,000, increase the Capital Stock account by $1,000, and increase the Paid-in Capital in Excess of Par account by $2,000.

Passport Global Sold 250 Shares of $4