Please show answer step by step with calculation . The answer is not 1160000 nor 1331000. I have provided a little intro to help you out with limitations. Thank you

introduction: Section 179 Limitations There are two limitations on the amount of Section 179 expense. 1. The law limits the maximum amount expensed in any year to the lesser of business net income or $1,160,000 (2023). You must reduce business income for all expenses, including regular MACRS depreciation, other than the Section 179 expense when applying this limitation. The taxpayer can carry forward the disallowed amount indefinitely. The taxpayer can use the carryforward in years that have enough business net income to absorb the Section 179 deduction. There is no time limit for this carryforward. 2. You must phase out the Section 179 election (dollar for dollar) if qualified assets purchased exceed $2,890,000 (2023). The law does not permit a carryforward if the Section 179 deduction is reduced due to the excess purchase provision.

Blue operates a restaurant in Chicago. In March 2023, Blue invested in a new interior heating and cooling system as well as a new interior fire alarm system to its existing commercial property. The total purchase price for these improvements is $1,418,000. Assume that Blue has taxable income before Section 179 of $1,331,000. What is Blue's total cost recovery in 2023, assuming it elects Section 179 but does not use bonus depreciation? Total cost recovery $