Source from PREP
The computer company registered a $16 million net loss for the year, largely because it was profitable only overseas, where much of their profits were used for paying higher taxes, while continuing to lose money in North America.
  (A) where much of their profits were used for paying higher taxes, while continuing
  (B) where much of their profits went to pay higher taxes, as they continued
  (C) where much of its profit went to pay higher taxes, while it continued
  (D) with much of their profits going to pay higher taxes, while continuing
  (E) with much of the profit used for paying higher taxes, as it continued
First, I aware that we should not use their and they here, it is the computer company, so A\B\D are gone. And I do feel that, in choice E, the usage of "with *** profits used for doing" is not so good.
But i don't know, technically, why this usage is wrong?
Second, if we replace their in choice A with its, will the new choice A be right?
Any instructors, pls.
Thanks in advance!