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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 $967,500 after making the required federal-to-state adjustments. Herger's federal tax return contains the following items:
Item Amount
Federal T-note interest income $ 4,900
Nevada municipal bond interest income $ 3,830
California municipal bond interest income $ 6,300
Interest expense related to T-note interest income $ 1,740
Royalty income $ 186,000
Travel expenses $ 11,700
Determine Herger's California business income.

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