7. A company's controller is adjusting next year's budget to reflect the effect of an expected 5 percent inflation rate. Listed below are selected items from next year's budget before the adjustment: Total salaries expense $250,000 Health costs 100,000 Depreciation expense 65,000 Interest expense on 10-year fixed rate notes 37,750 After adjusting for the 5 percent inflation rate, what is the company's total budget for the selected items before taxes for next year? a. $470,250 b. 5472,138 c. $473,500 d. S475,388