Sandstorm Corporation decides to develop a new line of paints. The project begins in 2016. Sandstorm incurs the following expenses in 2016 in connection with the project:
Salaries ..............................$85,000
Materials ..............................30,000
Depreciation on equipment ........12,500
The benefits from the project will be realized starting in July 2017. If Sandstorm Corporation chooses to defer and amortize its research and experimental expenditures over a period of 60 months, what are its related deductions in 2016 and 2017?