Inspiration and weapon penalty

Some quick questions :
1. ATK increased by inspiration and SS1 are counted as weapon ATK, will it be reduced by weapon size penalty?
2. For example, use a doom slayer (350 atk) and inspiration buff (350 atk) and SS1 buff (150 atk) so,i got 200 + 850 atk on the status window screen and i have -25% wepon size penalty
Which is the correct atk after penalty :
A. 200 + 850 * 0.75
B. 200 + (350*0.75) + 500