Refer to the financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com). Required: 1. What type
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1. What type of pension plan does Microsoft sponsor for its employees? Explain.
2. Who bears the "risk" of factors that might reduce retirement benefits in this type of plan? Explain.
3. Assuming that employee and employer contributions vest immediately, suppose a Microsoft employee contributes $1,000 to the pension plan during her first year of employment and directs investments to a bond mutual fund. If she leaves Microsoft early in her second year, after the mutual fund's value has increased by 2%, how much will she be entitled to roll over into an Individual Retirement Account (IRA)?
4. How did Microsoft account for its participation in the pension plan in fiscal 2015?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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