Which one of these answers is correct?

7 (B). John Is single and age 56, has AGI of $265,000, and Incurs the following expenditures In 2018. Medlcal expenses (before 7.5%-of-AGI floor) $27,000 Interest on home mortgage 15,500 State Income tax 7,500 State sales tax 4,500 Real estate tax 8,600 Charltable contrlbutlon 6,500: George is subject to the overall limitation on certain itemized deductions because his AGI exceeds the $261,500 threshold for single filers. His itemized deductions in 2018 after application of the overall limitation are computed below: Itemized deductions subject to overall limitation: Interest on home mortgage State income tax Real estate tax Charitable contributions 15,500 7,500 6,500 38,100 Reduction equals the lesser of the following: [3% x($265,000 AGI S261,500)] 80% of itemized deductions subject to limitation($38,100 105 | 30,480 x8096) Amount of reduction Deductible itemized deductions subject to overall limitation Itemized deductions not subject to overall limitation: Medical expenses [S27000-(1096 xS265,000 AGI)] Total itemized deductions (105) 37,995 500 38,495 Even if the option to deduct the state sales tax or the state income tax is available in 2018, George deducts the (higher) state income tax expense rather than the sales tax