The dividends received deduction Must exceed the applicable percentage of the recipient shareholder\'s taxable income Is affected by a requirement that the investor corporation must own the investee\'s stock for a specified minimum holding period Is unaffected by the percentage of the investee\'s stock owned by the investor corporation May be claimed by S corporations Solution The dividends received deduction Is affected by a requirement that the investor corporation must own the investee\'s stock for a specified minimum holding period. Ans) B Clarification: DEDUCTIONS THAT CANNOT BE CLAIMED by S Corp, dividends received deduction (allowed to C corporation). us production deduction.