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 $938,000 after making the required federal/state adjustments. Herger's federal tax return contains the following Items: Federal T-note interest income Item Nevada municipal bond interest income California municipal bond interest income Interest expense related to T-note interest income Royalty income Amount $ 6,600 $ 4,280 $ 5,300 $ 2,370 $ 144,000 Travel expenses Determine Herger's business income. Business income $ 10,500