Tax Drill - Compute Deduction for Research and Experimental Expenditures Sandstorm Corporation decides to develop a new line of paints. The project begins in 2022. Sandstorm incurs the following expenses in 2022 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 2023. Sandstorm's amortization deduction for 2022 is \& x and $ X for for 2023 . Feedback Check My Work Section 174 covers the treatment of research and experimental expenditures. The Regulations define research and experimental expenditures as follows: all such costs incident to the development of an experimental or pilot model, a plant process, a product, a formula, an invention, or similar property, and the improvement of already existing property of the type mentioned