I am ready to paint my newly finished basement.

The ceilings are smooth drywall and are only about 7 1/2 feet high.
As in typical basements, I have built soffits around the I-beams and
the hvac ducting. The ceiling will be white and the walls will be a
beige color with white trim.

For a low ceiling, what is the best strategy for painting?

1. Paint the soffits white on all sides to match the ceiling? The
thinking here is that the soffits blend into the ceiling.

2. Paint the sides of the soffits the wall color and the bottom of the
soffit white to match the ceiling? The thinking here is that surfaces
parallel to the ceiling are white, and surfaces parallel to the walls
are colored.

3. Paint all sides the wall color. The thinking here is that this
will not give the impression of a lower ceiling, but may tend to break
up the room more.

Your input is appreciated.