KLM issued $500,000 of 4%, 10 year bonds on 1/1/2019 when the market rate was 5%. RST owns 80% of KLM, and on 1/1/2021, purchased $100,000 of the bonds when the market rate was 3%.

Please answer the following questions: 1. Price the KLM bonds. 2. Calculate the gain or loss on the RST purchase of the bonds and you also need price the bonds when RST purchases.

3. Make consolidating entry *B at 12/31/2022

(Please demonstrate a clear calculation process, thanks)