In which of the following circumstances would a CPA who audits LM Corporation lack independence?

A.The CPA reduced LM's usual audit fee by 40% because LM's financial condition was unfavorable.

B.The CPA and LM's president are second-generation cousins.

C. The CPA has a home mortgage from LM, which is a savings and loan organization.

D. The CPA and LM each own 20% of FOB Inc., a closely held company. The CPAs 20% is material to his net worth and income

P.S: I know the answer is D, but can you explain more detail for each question and how come the correct is D??