Please Explain how to fill out a Schedule M-3 For Johnson Corporation

Johnson Corporation, a Minnesota Tool Broker has income and expenses for its current fiscal year, recorded under GAAP. A review of Johnson's books and records reveals the following information:

Johnson expensed, for book purposes, meals totaling $35,000 and entertainment costs totaling $55,000. These costs were incurred by Johnson sales personnel, are reasonable in amount, and are documented in company records.

During January of the current year, Johnson was sued by one of its employees as a result of a work-related accident. The suit has not yet gone to court. However, Johnson's auditors required the company to record a contingent liability (and related book expense) for $65,000, reflecting the company's likely liability from the suit.

Johnson recorded federal income tax for book purposes of $75,000.

Johnson used the reserve method for calculating bad debt expenses for book purposes. Its book income statement reflects bad debt expense of $25,000, calculated as 1.5% of sales revenue. Actual write-offs of accounts receivable during the year totaled $13,000.

MACRS depreciation for the year totals $106,000and depreciation expense for book totaled $86,000.

Johnson's book income included $10,000 of dividends received from a domestic corporation in which Johnson owns a 25% stock interest, and $4,000 of dividends from a domestic corporation in which Johnson owns a 5% stock interest.

Johnson recognized $9,000 of capital losses this year and no capital gains.

Johnson earned $3,000 of interest from municipal bonds and $8,000 of interest from corporate bonds.

Use Schedule M-3, Form 1120(pages 2 and 3), reconciling Johnson's book and taxable income.

Link provides one you can type into: https://www.irs.gov/pub/irs-access/f1120sm3_accessible.pdf