Harbor Company reported ending inventory at December 31, 1998, of ($ 3,000,000) under the LIFO inventory method.

Question:

Harbor Company reported ending inventory at December 31, 1998, of $\$ 3,000,000$ under the LIFO inventory method. In the notes to its financial statements, Harbor reported a LIFO reserve of $\$ 500,000$ at January 1, 1998, and $\$ 700,000$ at December 31, 1998. Cost of goods sold for 1998 was $\$ 8,000,000$. What would Harbor Company's ending inventory and cost of goods sold have been for 1998 if it had used FIFO?

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