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 $930,030 after making the required federal/state adjustments. Herger's federal tax return contains the following items: Item Amount Federal T-note interest income $ 4,100 Nevada municipal bond interest income $ 3,450 California municipal bond interest income $ 8,300 Interest expense related to T-note interest income $ 1,690 Royalty income $115,000 Travel expenses $ 10,800 Determine Herger's California business income. Business income