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

Herger Corporation does business in California, Nevada, and Oregon and has income tax nexus in these states as well. Hergers California state tax base was $936,500 after making the required federal/state adjustments. Hergers federal tax return contains the following items:

Item Amount
Federal T-note interest income $ 3,800
Nevada municipal bond interest income $ 4,140
California municipal bond interest income $ 8,100
Interest expense related to T-note interest income $ 1,550
Royalty income $ 143,000
Travel expenses $ 8,700

Determine Hergers California business income.

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