An executor may value assets as of the date of death or the alternate valuation date 6 months after death. Assuming the estate is eligible to elect, and the executor elects, the alternate valuation date, which of the following statements is correct?

I. Property sold by the executor before the alternate valuation date is valued at its arm's-length sale price.

II. Any property that may have increased in value since the date of death is valued at the alternate valuation date.

III. If the Executor elects the Alternate Valuation Date over the Date of Death Valuation, assets in the estate will be deemed to be held on short-term basis when they pass to estate heirs and distributes.

• I Only
• III Only
• I and II Only
• II and III Only
• I, II, and III