Herder Corp does business in California, Nevada and Oregon and has income tax nexus in these states as well. Herger's California state tax base was $943,500 after making the required federal to state adjustment. Herger's federal tax return contains the following items. Federal T note interest income 5,900 Nevada municipal bond interest income 3,690 California municipal bond interest income 5,500 Interest expense related to T note interest income 1,540 Royalty income 181,000 Travel expenses 10,100 Determine Herger's California business income Business income