penalty on scoring play

[Viking32]

Please correct me if I'm wrong, but doesn't R get the option of taking the penalty on the extra point OR the kickoff now? I can see two scenarios:

1) R accepts the K penalty on the XP and we go to the 1 1/2. Then the USC on R is accepted by K and we mark it off to the 16 1/2 and give the ready for play.

OR

2) R accepts the K penalty on the kickoff. The USC on R is accepted by K and we mark it off to the 18 and give ready for play. Then we mark off the K penalty on the kickoff.

Or am I missing something elementary?