At the beginning of the year, a company had an inventory of $400,000. During the year, the company purchased goods costing $1,500,000. Its ending inventory is $500,000 and its sales are $2,000,000. Compute the company's cost of goods sold and gross profit rate.
Group of answer choices

$1,400,000 and 70%, respectively.

$1,000,000 and 35%, respectively.

$1,000,000 and 70%, respectively.

$1,000,000 and 30%, respectively.

$1,400,000 and 30%, respectively.