Using Table 17.1, calculate Ed Robinson’s income tax due on his $35,000 taxable income, assuming that he files as a single taxpayer. After you make the calculation, explain to Ed what his marginal tax rate is and why it is important in making investment decisions.

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TABLE 17.1 FEDERAL INCOME TAX RATES AND BRACKETS FOR INDIVIDUAL AND JOINT RETURNS (FOR TAXES DUE BY APRIL 15, 2015) Tax Rates 10.0% 15.0% Individual Returns $0 to $9,075 $9,076 to $36,900 25.0% $36,901 to $89,350 28.0% 33.0% 35.0% 39.6% Over $406,751 $89,351 to $186,350 $186,351 to $405,100 $405,101 to $406,750 Taxable Income Joint Returns $0 to $18,150 $18,151 to $73,800 $73,801 to $148,850 $148,851 to $226,850 $226,851 to $405,100 $405,101 to $457,600 Over $457,061