Company A and Company B form a joint venture. Company A contributes 25% of the capital for the JV, or $300,000. Both companies account for their investment using the equity method.

Assume that during the first year, the JV records net income of $100,000 and pays dividends of $50,000. In year 2, the JV has a net loss of $75,000 and does not pay dividends. In the third year, the JV reports net income of $500,000 and pays dividends of $80,000. How does Company A record this investment on its balance sheet, how does it adjust the investment over years 1, 2, and 3, and what is on its balance sheet for the investment at the end of year 3?