An analyst gathers the following information (in GBP) as of 31 December about the UK subsidiary of a German company that purchased property and equipment on 1 January:

• Cash: 1,000,000

• Accounts receivable: 700,000

• Inventory: 800,000

• Property and equipment: 4,500,000

• Total assets: 7,000,000

The following exchange rate information was gathered:

| Date | EUR/GBP |

|----------------|----------|

| 1 January | 1.1550 |

| 31 December | 1.1625 |

| Weighted-average rate when inventory was acquired | 1.1430 |

Note: EUR/GBP is the amount of EUR per 1 GBP.

The functional currency of the subsidiary is GBP. After translating the UK subsidiary's balance sheet into the parent company's currency (EUR), the UK subsidiary would recognize total assets of: