KLM issued $500,000 of 4%, 10 year bonds on 1/1/2009 when the market rate was 5%. RST owns 80% of KLM, and on 1/1/2011, purchased $100,000 of the bonds when the market rate was 3%. Required: Price the KLM bonds. Calculate the gain or loss on the RST purchase of the bonds (i.e, you must price the bonds when RST purhcases). Make consolidating entry *B at 12/31/2012.