Part III is the correct place to start, as this is Section 1250 property. Keep in mind that depreciation is not recaptured on 1250 property as ordinary income. Rather, its recaptured as a capital gain subject to a maximum rate of 25%.
Without looking it up, I would recommend using the date placed in service as the date acquired. The recaptured depreciation will look right that way, and either way this is a long-term holding period.
I have not filled out a paper Schedule E in years (decades?) now, and I'm not sure there is a "disposed of this year" block on the paper form. Software has such a field, so the software will know that any previously disallowed losses can be deducted.