Herger Corporation does business in California, Nevada, and Oregon and has 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
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.