In 1922, when Truman was almost forty years old, he was living in his mother-in-law's house, watching the haberdashery store he
opened three years earlier go bankrupt, and he faced a future with no visible prospects.
(A) opened three years earlier go bankrupt, and he faced
(B) opened three years earlier go bankrupt and faced
(C) had opened three years earlier go bankrupt, and he was facing
(D) had opened three years earlier go bankrupt, and facing
(E) was opening three years earlier going bankrupt, and facing
This is a simple sentence in technical parlance with an IC followed by a compound modifier. comprising two present participles.
The template of this sentence is that someone was living in his mother in law's house, watching X and facing Y.
As per the conventions of parallelism, one is required to drop the pronoun in the second clause, if the subject of the first clause can stand as the subject of the second. A repetition of either a noun or a pronoun is considered superfluous and redundant in such situations. We can remove choices A and C on this score alone.
We can eliminate E for using the past progressive 'he was opening'.
Choice B is out for using an unparallel past tense verb for the second clause, which is not parallel to either 'was living' in the first clause or to the first modifier 'watching'.
Choice D survives ultimately by using the parallel modifiers 'watching' and 'facing'. The only Achilles' tendon is the use of a comma before the conjunction 'and' connecting the second modifier, but that is okay I suppose, as punctuations are not critically tested in GMAT.
It is a moot point whether a simple past tense is okay or a past perfect is required as they are not playing a make or break role in the context.
I vote D.
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