New Accountant`s Input
My friend and I have built a software platform which will be the basis of a startup company that we are planning to launch January `09. We have spent time and a little money to build a 1.0 release.
As an initial contribution to the corporation (with potential investors in mind), we want to "contribute" the platform (with all rights) into the corporation. The question is:
1) Can we value the platform and use that "value" as our initial capital contribution instead of the real dollar cost of developing the platform? We only paid $5000 for a coder to code it in plus our "sweat" to complete it?
2) A potential investor is asking for the real money we put in but we are hesitant to giving him the real cost because he might based his valuation on this real cost. Should we say that the cost is irrelevant and what is important is the market value of the platform.
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