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Herger Corporation does business in California, Nevada, and Oregon and has income tax nexus in these states as well. Herger's California state tax base was

Herger Corporation does business in California, Nevada, and Oregon and has income tax nexus in these states as well. Herger's California state tax base was $945,540 after making the required federal/state adjustments. Herger's federal tax return contains the following items:

Item Amount
Federal T-note interest income $ 6,200
Nevada municipal bond interest income $ 3,910
California municipal bond interest income $ 6,900
Interest expense related to T-note interest income $ 2,390
Royalty income $ 184,000
Travel expenses $ 8,200

Determine Herger's business income.

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