The following account balances were selected from the records of Blake Corporation at December 31, year 2, after all adjusting entries were completed:

Common shares (no par value; authorized 110,000 shares, issued 35,000 shares)	$	700,000
Contributed surplus		168,000
Dividends declared in year 2		20,000
Retained earnings, January 1, year 2		77,000
Correction of prior-period accounting error (a debit, net of income tax)		8,500
Income summary for 2020 (credit balance)		29,500

The stock price was $22.83 per share on that date. Required: 1. Identify the amounts that would be reported in the retained earnings column of the statement of changes in equity for year 2.

2. Prepare the shareholders equity section of the statement of financial position at December 31, year 2.

3. Compute and evaluate the dividend yield ratio. (Do not round intermediate calculations. Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).)