Refer to the 2020 financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com).

Required:
1. What type of pension plan does Microsoft sponsor for its employees?
2. Who bears the “risk” of factors that might reduce retirement benefits in this type of plan?
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. What journal entry did Microsoft use to account for its participation in the pension plan in fiscal 2020?