43. 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 $921,023 after making the required federal/state adjustments. Herger’s federal tax return contains the following items:

Item Amount Federal T-note interest income $ 5,000 Item Amount Nevada municipal bond interest income 3,400 California municipal bond interest income 6,000 Interest expense related to T-note interest income 1,400 Royalty income 100,000 Travel expenses 9,025 Determine Herger’s business income.