The key is that R’s live ball foul (invalid fair catch signal) is a post scrimmage kick foul. So, we first go to team R and tell them they can keep the ball, but only if they decline K’s holding penalty. If they don’t, the live ball fouls offset and the dead ball foul against R is enforced, giving K a first down. So, since R will decline the holding penalty, K accepts the 5 yd. penalty for invalid fair catch, and the 5 yd. dead ball foul for delay is also enforced. So, it’s R’s ball, 1st & 10, 10 yds. behind the spot where the ball was declared dead.