Which statement is true regarding income in respect of a decedent (IRD)?

IRD is income earned before death, but paid after the decedent's date of death.

IRD is income earned after death in which beneficiaries receive a step up in basis for items of IRD.

IRD is income earned after death and included on the final income tax return of the decedent.

IRD is income earned before death, but reported as income on the decedent's Form 1041.