Diluted earnings per share is$($could or could not be one answer$)$

Group of answer choices:

$1.$ adjusts the denominator, not the numerator

$2.$ only calculated when a conversion of dilutive securities occurs

$3.$ only disclosed if less than Basic EPS $($otherwise is set equal to Basic EPS$)$

$4.$ ignores preferred stock dividends

$1$ & $2$ are shown as incorrect. $4$ could be wrong. I think $3$ is the only correct one. Reassess please.