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: