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 Federal T-note interest income Amount $ 4,100 $ 3,450 8,300 $ Nevada municipal bond interest income California municipal bond interest income Interest expense related to T-note interest income $ 1,690 Royalty income Travel expenses Determine Herger's California business income. $115,000 $ 10,800
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 Federal T-note interest income Amount $ 4,100 $ 3,450 8,300 $ Nevada municipal bond interest income California municipal bond interest income Interest expense related to T-note interest income $ 1,690 Royalty income Travel expenses Determine Herger's California business income. $115,000 $ 10,800
Chapter25: Taxation Of International Transact Ions
Section: Chapter Questions
Problem 29P
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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 $930,030 after making the required federal/state adjustments. Herger's federal tax return contains the
following items:
Item
Federal T-note interest income.
Nevada municipal bond interest income
Amount
$ 4,100
$ 3,450
$ 8,300
California municipal bond interest income
Interest expense related to T-note interest income $ 1,690
Royalty income
Travel expenses
Determine Herger's California business income.
Business income
$115,000
$ 10,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46a8ac24-b1b9-4f5b-af1b-61e07fa166b1%2F552deb1a-9c45-4894-aac7-9ec73b6132fd%2Fvh1xp_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Federal T-note interest income.
Nevada municipal bond interest income
Amount
$ 4,100
$ 3,450
$ 8,300
California municipal bond interest income
Interest expense related to T-note interest income $ 1,690
Royalty income
Travel expenses
Determine Herger's California business income.
Business income
$115,000
$ 10,800
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