Equity Method Investment Analysis

An investment firm, InvestCo, acquires a 30% ownership stake in a tech startup, InnovateTech, for $3 million. However, InnovateTech has not declared any dividends since the acquisition, and its earnings for the first year are reported at $1 million. Under the equity method, InvestCo needs to recognize its share of InnovateTech's earnings and the subsequent effects on its financial statements.

Assuming InvestCo's prior accounting policy aligns with equity method standards, what amount will InvestCo report as its investment in InnovateTech on its balance sheet after the first year?