On January 1, 2016, several manufacturing companies, Company A, Company B, Company C and Company D form a joint venture to research applications of their scrap and byproducts. Each agrees to contribute $250,000 of capital to the formation of the joint venture, Joint venture XYZ (JV), for 250 shares of stock, or 25% of the voting rights. JV issues no preferred stock. Each company determines they will account for their investment using the equity method of accounting.

Assume that during the first and second years, the JV has net losses of $80,000 and $120,000, respectively.

Assume that during the third year, the JV has net income of $300,000 and pays dividends totaling $200,000.

Assume that during the fourth year the JV has a profit of $200,000.

Lets say that at the end of the fourth year, Company A decides to sell its investment in the JV to Company Q. Company A and Company Q agree on a sale price of $250,000 for 100% of Company As interest in JV XYZ.

How does company A record this investment on its balance sheet, and how is this adjusted over the four years that A holds shares in B?