Edison is getting ready to do his taxes. He is single and lives in Philadelphia. Edison earned $50,000 in taxable income in 2015. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2015. The Tax Rate Is... (Percent) 10.0 15.0 25.0 On Annual Taxable income... Up to $9,225 From $9,225 to $37,450 From $37,450 to $90,750 From $90,750 to $189,300 From $189,300 to $411,500 From $411.500 to $413,200 Over $413,200 28.0 33.0 35.0 39.6 of Based on the IRS table, Edison calculates that his marginal tax rate is 28% when his annual taxable income is $50,000. Edison calculates that he owes in income taxes for 2015. Edison then calculates that his average tax rate is , based on the annual income level and the amount of taxes he owes for 2015 After figuring out what he owes in taxes in 2015, Edison decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $1,000 of taxable income from the federal government. 15.0 tudy Tools 28.0 From $9,225 to $37,450 From $37,450 to $90,750 From $90,750 to $189,300 From $189.300 to $411,500 From $411,500 to $413,200 Over $413.200 33.0 3 35.0 39.6 15 oss Tips ss Tips Based on the IRS table, Edison calculates that his marginal tax rates 28 when his annual taxable income is $50,000 RYOU Edison calculates that he owes in income taxes for 2015 Tools Edison the calculates that his average tax rate is based on the annual income level and the amount of taxes he owes for 2015 ciples of After figuring out what he was in taxes in 2015, Edison decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $1,000 of taxable income from the federal government The maximum amount that ison is willing to pay to learn this strategy and reduce his taxable income by $1,000 (Hint: Sheltering some income means finding a legal way to avoid being charged Income tax on that income. For example, someone who has $50,000 in taxable income and shelters $10,000 pays income tax on only $40,000.) back