Julie and Robert each owned a luxury boat. The boats are used for a charter business. Robert approached Julie about trading boats, and she agreed. The adjusted basis of Julie's boat is $125,000, and the adjusted basis of Robert's boat is $130,000. Robert and Julie agreed to have both boats painted prior to the trade. Robert paid $2,500 to have his boat painted, and Julie paid $3,500 to have her boat painted. What is Julie's new adjusted basis in the newly traded boat?

a) $132,500

b) $130,000

c) $125,000

d) $128,500