Which of the following is CORRECT regarding preferred-stock dividends when determining the numerator of the Basic EPS calculation?

Preferred stock dividends must always be subtracted from net income.

If preferred stock dividends are not paid, and the preferred stock is non-participating, the dividends are not subtracted.

If preferred stock dividends are not paid, and the preferred stock is non-cumulative, the dividends are not subtracted.

If preferred stock dividends are distributed as dividends in kind, they are not subtracted.