Following is the 2007 first quarter FIN48 footnote disclosure for Under Armour, a maker of athletic sportswear. All amounts are in thousands of dollars.

Provision for Income Taxes The Company adopted the provisions of FIN 48 on January 1, 2007. As a result of the implementation of FIN 48, the Company recorded an additional \($1,597\) liability for unrecognized tax benefits, of which \($1,152\) was accounted for as a reduction to the January 1, 2007 balance of retained earnings with the re- mainder recorded within deferred tax assets. After recognizing these impacts upon adoption of FIN 48, the total unrecognized tax benefits were approximately \($2,054\). Of this amount, approximately \($1,609\) would impact our effective tax rate if recognized. The Company does not expect that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income. The unrecognized tax benefits liability recorded on January 1, 2007 included \($512\) for the accrual of interest and penalties.
The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The majority of the Company’s returns are no longer subject to U.S. federal, state and local or foreign income tax examinations by tax authorities for years before 2003.

Required:
1. Give the journal entry that Under Armour made on January 1, 2007 to reflect the adoption of FIN48.
2. What amount of contingent liability had Under Armour recorded on its books for uncertain tax benefits prior to adoption of FIN48?
3. Do you think Under Armour was taking a conservative or aggressive approach to recognizing tax benefits on uncertain tax positions prior to adoption of FIN48? How can you tell?
4. What was the total amount in the Tax contingency reserve account for Under Armour on January 1, 2007 after adoption of FIN48?
5. Of the total Tax contingency reserve amount on January 1, 2007, what amount represents interest and penalties?
6. What amount of the Tax contingency reserve account on January 1, 2007 after adoption of FIN48 represents permanent difference benefits that have yet to be recognized?
7. What amount of the January 1, 2007 Tax contingency reserve account represents temporary differences?
8. What amount of temporary difference benefits had Under Armour recognized prior to adoption of FIN48?